Gov’t to appeal court’s decision to suspend new taxes

The government plans to appeal the decision by the high court suspending implementation of new taxes contained in the Finance Bill 2018.

National Treasury Cabinet Secretary Henry Rotich says the office of the Attorney General is expected to file an appeal Friday or Monday next week.

The suspension orders were issued Thursday by High Court judge Wilfrida Okwany after activist Okiya Omtata moved to court alleging breach of the constitution.

The Finance Bill 2018 proposed a raft of new taxes aimed at shoring up tax collection in the face of widening budget deficit.

Among the proposals was introduction of a new excise duty that requires customers to pay 0.05 per cent on any transaction exceeding 500,000 shillings.

The bill that came into effect on the 1st of July also increased charges on mobile transactions from the current ten per cent to 12 per cent.

However, the law was dealt a major blow by the high court after Judge Okwany issued conservatory order until a case filed opposing the law is heard determined.

CS Rotich says the government is preparing appeal documents through the office of the Attorney General.

Rotich says the suspension of the law is likely to impact negatively the operations of the government since it touches on taxes.

There is uncertainty over the ruling since banks and telecom operators had implemented the new law.

Speaking during a meeting with the African Development Bank president Akinwumi Adesina, Rotich said the bank has agreed to finance the Mombasa road to Westland overpass.

The African Development Bank has also agreed to finance other projects among them dams and roads.


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