Blow to Kenyans after Today's Court ruling on 16% Fuel Tax

Kenyans to continue bearing the brunt of fuel levy

Activist Okiya Omtatah had on Monday filed an urgent case seeking to suspend the implementation of new fuel prices, arguing that it is a threat to the socio-economic rights of Kenyans.

Omtatah argued that the case was extremely urgent because the implementation of the tax has sharply forced upwards the prices of those products, resulting in widespread public discontent.

“The imposition of VAT on petroleum products at 16 per cent of transaction value and not of the taxable value is tantamount to double taxation and therefore null and void,” he said in a sworn statement.

Incomplete legislative process

However, the High Court Judge Chacha Mwita Judge Chacha Mwita ruled that the legislative process was incomplete until President Uhuru Kenyatta assents or rejects the Bill.

He further ordered the activist to serve Treasury Cabinet Secretary Henry Rotich with the suit papers.

The case is set to continue next Monday.

The National Assembly had on Thursday passed an amendment to the Finance Bill 2018 extending the transitional exemption on petroleum products for a further two years, until September 1, 2020.

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