Activist moves to court to stop 16 pc levy on petroleum products

Activist Okiya Omtata has moved to court to challenge the decision by Treasury Cabinet Secretary Henry Rotich to implement the 16 percent Value Added Tax on petroleum products.

In a petition filed at the High Court, Omtata argues that the increased levy on fuel is unconstitutional and should be suspended as it has negative impacts on the cost of essential goods and commodities in the country.

The development coming as the Central Organization of Trade Unions – COTU also filed a separate petition seeking to annul implementation of the tax.

In a certificate of urgency filed at the Milimani Law court, Activist Omtata has sued Treasury CS Rotich for allowing the implementation of the new levy on petroleum products.

Omtata says the move is in total defiance to the National Assembly amendments to the Finance Bill 2018 which suspended implementation by two years.

In seeking to have the court invalidate the 16 percent Value Added Tax on petroleum products, Omtata argues that the increased levy which took effect on Saturday is unconstitutional invalid and unfair to Kenyans.

The activist further says the decision to impose the new levy could lead to protests from the public and wants the court to suspend its implementation pending the determination of the case.

Rotich, Kenya Revenue Authority, Energy Regulatory Commission, Attorney General and National Assembly have been listed as respondents in the case.

Meanwhile, the Central Organization of Trade Unions COTU has joined the struggle seeking to reverse the implementation of the tax.

The union has sued the National Treasury, Kenya Revenue Authority and Energy Regulatory Commission arguing that the 16 percent value-added tax on petroleum products is punitive and will lead to increased cost of living.

 

  

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