Omtatah asks court to suspend taxes in 2018 budget

Treasury CS Henry Rotich displays the briefcase containing the 2018/19 budget estimates as presented to Parliament on June 14, 2018. /COURTESY
Treasury CS Henry Rotich displays the briefcase containing the 2018/19 budget estimates as presented to Parliament on June 14, 2018. /COURTESY

Rights activist Okiya Omtatah has moved to court in a bid to suspend the implementation of taxes in Finance Bill, 2018.

Omtatah argues that Treasury Cabinet Secretary Henry Rotich did not comply with deadlines set in law.

He says the CS violated section 7 of the sixth schedule by using the "unconstitutional" Provisional Collection of Tax and Duties Act to implement the bill before approval by parliament and signing by President Uhuru Kenyatta.

The prices of kerosene, second-hand clothes and mobile transfers are set to shoot up after the government proposed new taxes to fund the Big Four agenda

Rotich announced increased taxes on several key consumer goods and services that will further burden the taxpayer.

In addition, workers will be forced to part with an additional tax of 0.5 per cent or Sh5,000, whichever is higher, from their monthly earnings to fund the Housing programme.

Also introduced is a 0.05 per cent ‘Robin Hood’ tax on any money transfers through financial institutions of Sh500,000 or more.

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