KRA sets to appeal to courts for tax collection halt

The Kenya Revenue Authority (KRA) will appeal a court order that temporarily barred it from collecting minimum tax from businesses.

KRA Commissioner for Legal Services Paul Matuku,yesterday said that they had sought an early date for hearing of the case on May 19, before the second instalment of the minimum tax falls due.

“KRA successfully sought for an early hearing date and the court has agreed to hear and determine the matter before the second instalment falls due. Additionally, KRA is putting in an appeal and an application for stay to the Court of Appeal” said Matuku.

The taxman added that businesses that had paid the minimum tax will retain the money in their iTax ledger pending the outcome of the petitions.

KRA started collecting the minimum tax at the rate of one percent of the gross turnover in January following changes to the Income Tax Act.

High Court George Odunga in his ruling on Monday said the petition by the traders from Kajiado and Machakos counties raised weighty questions of law and that KRA can “hold its horses” for the time being, as the court listens to the arguments made by the parties.

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