Epra, KRA in contempt of court over fuel levy - Kabando

Kabando says effecting the new taxes on the Finance Act 2023 is illegal

In Summary
  • In a ruling on Monday, Justice Mugure Thande said the state did not give sufficient reasons to warrant her to lift the orders.
  • The judge also forwarded the file to the CJ to empanel a bench to hear the petition.
Former Mukurweini MP Kabando wa Kabando.
Former Mukurweini MP Kabando wa Kabando.
Image: FILE

Former Mukurwe-ini MP Kabando wa Kabando has castigated the Energy and Petroleum Regulatory Authority (Epra) and Kenya Revenue Authority for effecting the fuel levy.

This is after High Court ruled to extend orders suspending the Finance Act 2023, pending the hearing and determination of a case filed by Busia Senator Okiya Omtata and six other activists.

In a statement on Monday, Kabando said effecting the new taxes on the Finance Act 2023 is illegal.

However, Epra affected the new prices with an 8 per cent VAT increase in the fuel levy.

"High Court confirms suspension of Finance Act 2023. New taxes by President William Ruto is illegal, null and void ab initio. An extra 8 per cent VAT on fuel is irregular, illegal, and inapplicable. It's robbery via UDA regime errors. Epra and KRA are violating the law; contempt of court orders," he said.

Epra increased fuel prices with petrol going up by Sh13.49, diesel(Sh12.39) and Kerosene(Sh11.96) in Nairobi.

In a ruling on Monday, Justice Mugure Thande said the state did not give sufficient reasons to warrant her to lift the orders.

The judge also forwarded the file to Chief Justice Martha Koome to empanel a bench to hear the petition.

The Finance Act, 2023 had 87 proposed amendments, some of which were approved last month when the National Assembly debated them into the night.

Key among the proposals passed was the 16 per cent value-added tax on fuel.

Some 184 MPs largely from Kenya Kwanza supported the Bill, whereas 88 MPs from Azimio opposed the amendment.

On June 26, President William Ruto assented to the Finance Bill 2023 after lawmakers approved tax measures to pump in more than Sh200 billion in the Kenya Kwanza's Sh3. 6 trillion debut budget.

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