Court extends orders stopping implementation of 16% VAT on petroleum products

Court extends orders stopping implementation of 16% VAT on petroleum products

BY  NAMULONGO PETER,NAIROBI,12TH SEPT 2018-The high court in Kisumu has extended  orders  stopping implementation  of the 16%  VAT imposed on fuel products.

The National Treasury has defended its decision not to halt implementation of 16 percent VAT on fuel.

While ruling on the matter Judge Ochieng on Wednesday said he will not issue or overturn orders issued earlier, adding that the case filed by a Kisumu youth group will be heard alongside a similar suit filed in Nairobi.

The judge said the case against Mr Rotich and Mr Gaichuhie will be mentioned on Monday at the at the High Court in Milimani.

“The order stopping the implementation of the tax is there until it is set aside. I cannot do that (overturn) and that is why the matter is better heard in Nairobi alongside the other case,” said the judge.

He added: “The two cases are of the same subject matter. It is only prudent that they be fixed for mentioning at one place so that the issues are ventilated upon and agreed on.”

The judge said that Kenyans are in a difficult spot, same to the national government, saying there is an urgent need to address the matter.

“All Kenyans, including me, are suffering. You should also look into who created the problem,” Judge Ochieng told the lawyers.

This happened even as ERC made a fresh application seeking to overturn the orders issued by the court.

Mr Kenneth Amonde, the lawyer for the three petitioners who filed contempt case against Mr Rotich and ERC, insisted the two must respect  court orders.

Back In Nairobi Chief Administrative Secretary Nelson Gaichuhie on Wednesday told a senate committee said that they have not been served with any court order.

Mr Gaichuhie told the Senate Committee on Energy that they have not disobeyed any court ruling.

“We are not ignoring or disobeying any court but until served, we can’t act,” Mr Gaichuhie said.

He said postponing the implementation of the act for two more years will not really solve the problem.

“We either repeal altogether because between now and 2020 nothing will change,” the CAS said.

He said Treasury is alive of the cries of the public and a lot of consultation is going on.

“There are meetings between Treasury and national assembly and hope a solution will be found,” he said.

The conservatory orders issued in Bungoma stopped Kenya Revenue Authority and ERC from implementing the Finance (VAT) Act 2013, which was effected from September 1.

This was to enable the president to either assent to or reject the amended Finance Bill passed by the National Assembly


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