The Kenya Revenue Authority has said that it will challenge the High Court orders temporarily suspending KRA's implementation of the Minimum Tax pending the hearing and determination of a petition.
KRA’s Legal Services and Board Coordination Commissioner Paul Matuku said on Tuesday that the authority is putting in an appeal and an application for a stay to the Court of Appeal after it successfully sought for an early hearing date, which the court agreed to hear and determine the matter before the second installment falls due.
On Monday, the High Court sitting in Machakos stopped KRA from demanding payment of the minimum tax that was introduced by the government last year.
Justice George Odunga said enforcement of the impugned legislation stands to kill businesses and livelihood of millions of Kenyans operating small to medium enterprises which form the majority of the business community.
However, the authority said that it will abide by the ruling issued by the court and await the outcome of the main petition slated for hearing on May 19, 2021.
It added that those who have already paid the tax will retain it as a credit in their iTax ledger pending the outcome of the Petitions.
The judge ruled that the order will remain in force pending a petition filed by registered officials of the Isinya East Sub County Bar Owners Association.
"The death of a business is certainly not damage that can be remedied by way of damages. That is why it's in the interest of Justice that this court interven3e to preserve the business and livelihood s of the petitioners," he said.
The tax took effect on January 1, 2021.
