Saturday, August 3, 2024 – The government of President William Ruto has taken the rejected Finance Act 2023 battle to the Supreme Court even as Kenyans continue to celebrate the Court of Appeal ruling that declared the Act unconstitutional.
Citizens, long burdened by escalating taxes, celebrated a rare victory against government overreach. However, the jubilation may be short-lived as the government plans to appeal the ruling, which has created a Ksh 510 billion gap in the national budget for the current fiscal year.
National Treasury filed a notice
of appeal with the Supreme Court, challenging the Court of Appeal’s decision.
The Treasury argues that overturning
the Finance Act 2023 threatens to slash Ksh164 billion from its anticipated
revenue — a critical blow to an already strained fiscal framework.
The stakes are extraordinarily
high. The Finance Act 2023 has been instrumental in reshaping Kenya's tax
landscape.
It imposed a series of tax
hikes, including doubling VAT on fuel from eight to 16 per cent and introducing
new income tax bands for high earners.
With the Act now voided, the
government faces not only the loss of this revenue but also the logistical
nightmare of reverting to previous tax laws, which could further complicate
revenue collection and fiscal planning.
The Kenyan DAILY POST
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