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September 19, 2018

Rotich, ERC sued for contempt over VAT law

National Treasury Cabinet Secretary Henry Rotich leaves Parliament after meeting with speaker of the national assembly over the controversial finance bill that imposed the 16 percent VAT Tax on Petroleum products. September 6, 2018. Photo/Jack Owuor
National Treasury Cabinet Secretary Henry Rotich leaves Parliament after meeting with speaker of the national assembly over the controversial finance bill that imposed the 16 percent VAT Tax on Petroleum products. September 6, 2018. Photo/Jack Owuor

Treasury CS Henry Rotich and Energy Regulatory Commission boss Pavel Oimeke have been sued for contempt.

Sumawe Youth Group, which last week obtained temporary orders stopping the execution of 16 per cent VAT on petroleum products, now wants the duo summoned for contempt.

Kisumu High Court judge Fred Ochieng’ yesterday certified the case urgent and ordered the petitioners to serve Treasury, ERC and the Attorney General. The case will be mentioned today.

Lawyer Ken Amondi said the ERC was served with the orders and the CEO acknowledged receipt to the media. Justice Stephen Riechi issued the orders in Bungoma last week.

“The court order and all pleadings from court were duly served to the ERC and the Treasury. The ERC director has confirmed in the press that he has knowledge of the order through scanned copies,” Amondi said. Amondi said since the ERC received scanned copies of the orders, they should have implemented it.

Justice Riechi granted orders quashing the decision the Kenya Revenue Authority and the ERC dated September 1, 2018 to implement the Finance (VAT) Act 2013 levying 16 per cent VAT on petroleum products from September 1, to enable the President to either assent to or reject the amended Finance Bill.

President Uhuru Kenyatta has remained silent amid protests over the increase on the cost of fuel.

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