@StandardMedia

High Court declares Rotich cannot collect taxes before Finance Bill becomes law

3 weeks ago, 21:14

By: Kamau Muthoni

A raft of controversial taxes Treasury imposed through an alternative legislation pending enactment of the Finance Bill, 2018 are illegal, a court has ruled.

Those affected are tariffs on mobile money transfers, kerosene and bottled water that were to be collected for six months prior to Parliament's approval and presidential assent to the Finance Bill, 2018.

Justice Winfrida Okwany ruled that a Bill cannot be implemented until it is processed to an Act of Parliament.

"A declaration that Finance Bill, or any other parts or provisions thereof, including on taxation, cannot be implemented before the Bill becomes the Finance Act after it goes through the parliamentary legislative process laid out in the Constitution for approval and adoption by Parliament, and assent by President,” ruled Justice Okwany.

In June, Treasury Cabinet Secretary Henry Rotich published a legal notice indicating that he would use the Provisional Collection of Taxes and Duties Act of 2018 to enforce part of the Finance Bill.

Kenyans were to start paying for the listed items from last July 1.

But activist Okiya Omtatah sought stay orders, suing Rotich, the Kenya Revenue Authority, the Attorney General and National Assembly.

Mobile money was to attract a 12 per cent excise tax, up from the previous 10 per cent, while KRA would collect Sh10.31 tax from a litre of kerosene from the previous year’s tax of Sh7.21.

Large vehicles would attract a 10 per cent additional excise duty, 20 per cent demurrage duty on foreign ships and five per cent capital gain tax.

The notice was meant to cushion the taxman from failing to hit the set collection target due to delays in passing the Finance Bill.

Rotich urged the court to dismiss the case filed by Mr Omtatah, saying stopping collection of taxes would halt Government activities.

But Justice Okwany said Parliament had powers to authorise withdrawal of money from the Consolidated Fund to facilitate Government business until such a time the Appropriation Act was assented to.

The judge, however, clarified that the case was not about the constitutionality of the Finance Bill but its implementation on provisional basis before being passed into law.

It also emerged that the CS had not consulted when he decided to implement the taxes.

Justice Okwany noted that although Rotich had argued that public participation was fulfilled through engaging MPs, he did not present any evidence or minutes showing that there was consultation.

“The dangers of implementing a Bill that has not come into law becomes more prominent when one considers that such a Bill had not, at the time of implementation, been subjected to public participation,” the judge ruled


Read More


Category: topnews news

Suggested

8 minutes
@CITIZENTV - By: Ian Omondi
Outrage after Lawrence Lual Malong Yor Jnr pledges support for Kenya universities body

A video of controversial South Sudan tycoon Lawrence Lual Malong Yor Jnr pledging support for the KUSO has drawn the ire of Kenyans online. ...

Category: topnews news
40 minutes
@CITIZENTV - By: Moses Ngige
Wazito keep faith in Mohammed after Ouna exit

Mohammed has been assisting Frank Ouna at Wazito in the just concluded 2018 Kenyan Premier League (KPL) season ...

Category: topnews news sports
1 hours ago, 18:46
@DailyNation - By: David Mwere
Constitution amendment bill flops in Parliament

MPs fail to raise numbers to vote on the Constitution of Kenya (Amendment) Bill, 2018. ...

Category: topnews news
1 hours ago, 18:46
@CITIZENTV - By: Agencies
Arsene Wenger ready for January return to football

Arsene Wenger has expressed his intention to return to football in January having received "enquirers from all over the world ...

Category: topnews news sports
1 hours ago, 18:15
@DailyNation -
Harambee Starlets to feature in AWCON after E. Guinea banned

The decision will see Starlets make a second appearance in the competition. ...

Category: topnews news
2 hours ago, 17:54
@CITIZENTV - By: Reuters
Congo accuses Angola of violent expulsions, Luanda denies

Congo gov't accused Angolan authorities of violently expelling thousands of its citizens during a crackdown on artisanal diamond mining. ...

Category: topnews news

@StandardMedia

High Court declares Rotich cannot collect taxes before Finance Bill becomes law

3 weeks ago, 21:14

By: Kamau Muthoni

A raft of controversial taxes Treasury imposed through an alternative legislation pending enactment of the Finance Bill, 2018 are illegal, a court has ruled.

Those affected are tariffs on mobile money transfers, kerosene and bottled water that were to be collected for six months prior to Parliament's approval and presidential assent to the Finance Bill, 2018.

Justice Winfrida Okwany ruled that a Bill cannot be implemented until it is processed to an Act of Parliament.

"A declaration that Finance Bill, or any other parts or provisions thereof, including on taxation, cannot be implemented before the Bill becomes the Finance Act after it goes through the parliamentary legislative process laid out in the Constitution for approval and adoption by Parliament, and assent by President,” ruled Justice Okwany.

In June, Treasury Cabinet Secretary Henry Rotich published a legal notice indicating that he would use the Provisional Collection of Taxes and Duties Act of 2018 to enforce part of the Finance Bill.

Kenyans were to start paying for the listed items from last July 1.

But activist Okiya Omtatah sought stay orders, suing Rotich, the Kenya Revenue Authority, the Attorney General and National Assembly.

Mobile money was to attract a 12 per cent excise tax, up from the previous 10 per cent, while KRA would collect Sh10.31 tax from a litre of kerosene from the previous year’s tax of Sh7.21.

Large vehicles would attract a 10 per cent additional excise duty, 20 per cent demurrage duty on foreign ships and five per cent capital gain tax.

The notice was meant to cushion the taxman from failing to hit the set collection target due to delays in passing the Finance Bill.

Rotich urged the court to dismiss the case filed by Mr Omtatah, saying stopping collection of taxes would halt Government activities.

But Justice Okwany said Parliament had powers to authorise withdrawal of money from the Consolidated Fund to facilitate Government business until such a time the Appropriation Act was assented to.

The judge, however, clarified that the case was not about the constitutionality of the Finance Bill but its implementation on provisional basis before being passed into law.

It also emerged that the CS had not consulted when he decided to implement the taxes.

Justice Okwany noted that although Rotich had argued that public participation was fulfilled through engaging MPs, he did not present any evidence or minutes showing that there was consultation.

“The dangers of implementing a Bill that has not come into law becomes more prominent when one considers that such a Bill had not, at the time of implementation, been subjected to public participation,” the judge ruled


Read More

Category: topnews news

Suggested

8 minutes
@CITIZENTV - By: Ian Omondi
Outrage after Lawrence Lual Malong Yor Jnr pledges support for Kenya universities body

A video of controversial South Sudan tycoon Lawrence Lual Malong Yor Jnr pledging support for the KUSO has drawn the ire of Kenyans online. ...

Category: topnews news
40 minutes
@CITIZENTV - By: Moses Ngige
Wazito keep faith in Mohammed after Ouna exit

Mohammed has been assisting Frank Ouna at Wazito in the just concluded 2018 Kenyan Premier League (KPL) season ...

Category: topnews news sports
1 hours ago, 18:46
@DailyNation - By: David Mwere
Constitution amendment bill flops in Parliament

MPs fail to raise numbers to vote on the Constitution of Kenya (Amendment) Bill, 2018. ...

Category: topnews news
1 hours ago, 18:46
@CITIZENTV - By: Agencies
Arsene Wenger ready for January return to football

Arsene Wenger has expressed his intention to return to football in January having received "enquirers from all over the world ...

Category: topnews news sports
1 hours ago, 18:15
@DailyNation -
Harambee Starlets to feature in AWCON after E. Guinea banned

The decision will see Starlets make a second appearance in the competition. ...

Category: topnews news
2 hours ago, 17:54
@CITIZENTV - By: Reuters
Congo accuses Angola of violent expulsions, Luanda denies

Congo gov't accused Angolan authorities of violently expelling thousands of its citizens during a crackdown on artisanal diamond mining. ...

Category: topnews news
Our App