Editor's Review

  • The High Court in Machakos on Monday barred the Kenya Revenue Authority (KRA) from imposing the minimum tax on businesses.

The Kenya Revenue Authority (KRA) has said that it will appeal the High Court ruling that declared minimum tax unconstitutional.

In a statement, the taxman said they disagree with Justice Odunga’s findings in the case and will challenge his ruling at the Court of Appeal.

KRA said that is the only way to ensure it continues to review and improve on its tax policies and ensuring every citizen contributes their fair share of tax.

“The Kenya Revenue Authority respectfully disagrees with the findings of the Court and will prefer an appeal to the Court of Appeal to challenge this finding. This is to ensure that KRA continues to review and improve on tax policies in order to reduce the tax burden while ensuring that every citizen contributes their fair share of tax,” reads the statement.

[KRA]

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The High Court in Machakos on Monday barred the Kenya Revenue Authority (KRA) from imposing the minimum tax on businesses.

In his ruling, Justice George Odunga declared 12D of the Income Tax Act unconstitutional and unlawful.

The minimum tax would have been applicable to all businesses whether they made profit or not.

This is after the Kitengela Bar Owners Association (KBAO) had filed a petition against the taxman, and the office of Attorney General Paul Kihara.

In 2020, parliament amended the Income Tax Act allowing KRA to collect the minimum tax starting January 2021.