Connect with us

General News

Kenya: High Court Wins Hearts With Minimum Tax Ruling

Published

4 years ago

on

[ad_1]

The Judiciary has once again endeared itself to Kenyans following a landmark ruling that saw minimum tax declared null and void on Monday, September 20.

High Court Judge, Justice George Odunga became a darling to the already overburdened citizens when he threw out the infamous levy on grounds that it is unconstitutional and unfairly targets business operators who are suffering from losses.

While disapproving the usage of minimum tax as a ploy to nab tax defaulters, Justice Odunga further stated that it could result to double taxation, a move that was huge relief to the Kenyan business community.

“Apart from minimum tax unfairly targeting people whose businesses are making losses for whatever reason, by forcing them to pay taxes from their capital as opposed to from their profits, it could potentially lead to double taxation,”

“Generally, businesses suffering from losses will be sacrificed on the altar while the capital for those making profits and are able to pay their levies will not be affected,” he explained.

The ruling which comes barely a year after the Cabinet Secretary for Finance, Ukur Yatan proposed the levy, elicited mixed reactions among Kenyans with majority applauding the Judiciary for coming to the rescue of disgruntled taxpayers.

“At this pointing time its only courts that can save poor Kenyans from this greedy leaders,” wrote one Janet Wamuyu.

“Great, it is only in judiciary whereby the concerns of ordinary Kenyans are taken into consideration,” opined Martin Muiruri