[President William Ruto gets a final laugh, Photo: Citizen Digital]
The government has been given the go ahead to implement its tax policies envisaged in the Finance act 2023 after the court appeal lifted the order barring it.
In a ruling rendered this afternoon, Justice Mohamed Warsame has lifted the conservatory orders noting that the appeal filed by Treasury Cabinet Secretary Njuguna Ndung’u has merit
In his filed affidavit Treasury CS Njuguna Ndung’u said the suspension of the Act is affecting government operations including honoring debt obligations and realizing development projects.
The temporary orders are up until the decision of the three judge bench constituted by Chief Justice Martha Koome to determine the case filed by Okiya Omtatah
The Justice David Majanja led bench will determine Omtatah suit, petitioning the act over its procedure of passing the bill in the national assembly and some provisions of the act including the 1.5 percent housing levy saying it bypassed consent of the senate.
Following the orders by the court of appeal giving the government the go ahead to implement its tax policies, the Kenya Revenue Authority has revealed plans to backdate the taxes it hasn’t collected during the period the act was under suspension.
The orders came as a double blow to salaried workers who had escaped the July deductions.
“All officers are advised to read this circular and the specific provisions of Finance Act 2023. Further, officers are advised that the provisions of the Act shall come into effect on the dates specified in Section 1 of the Act. The Act provides the following effective dates July 1, 2023; September 1, 2023; and January 1st, 2024,” an internal memo circulated among KRA staff says.