Bungoma High Court Temporarily Stops 16% Tax on Fuel

The Judiciary has stepped in to temporarily halt the 16% tax increment on petroleum products.

Bungoma High Court on Thursday issued temporary orders stopping the implementation of the Value Added Tax that has sparked a public outcry.

The case was lodged by three Kisumu residents who sued Treasury CS Henry Rotich over the levy.

Justice Stephen Riech ruled that the case be mentioned on September 12.

Speaking after a closed meeting with the National Assembly on Monday, Rotich promised that an agreement on the levy would be reached soon.

Also present in the meeting was Attorney General Paul Kihara, other top members of the Executive and Speaker Justin Muturi.

The increment effected earlier in the week caused a boycott by some oil marketers resulting in fuel shortage across the country.

On Monday, activist Okiya Omtatah moved to court to challenge the 16% VAT noting the bill has negative impacts that will lead to protests from the public.

A similar case was filed by COTU, through which the Secretary General Francis Atwoli, who indicated that the tax will increase the cost of living.

Through a press release, KRA moved to implement the levy after the Treasury CS disregarded a motion passed by Parliament to suspend it.

Rotich mentioned that it will supplement tax revenue sources considering the huge consumption of petroleum products in the economy.

 

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