This archive report was first published on 27 September 2021.
Published on September 27, 2021, the High Court has dealt another blow to the Kenya Revenue Authority (KRA) by suspending the increase of excise duty on petroleum products, effective October 1, 2021.
Two Kenyans, Isaiah Odando and Wilson Yata, had petitioned the court to stop the impending decision by the taxman to increase excise duty on the products by 4.97 percent in line with average annual inflation.
The court's decision comes barely a week after it found KRA's plan to impose a minimum tax on corporate sales, even when a company reports losses, as illegal.
Justice James Makau observed that if KRA adjusts the excise duty rates as proposed, Kenyans would be exposed to danger, and the petitioners would stand prejudiced if the interim order is not granted.
The excise duty adjustment is in line with the law that demands that it be revised upwards in tandem with the cost of living measure or the average rate of inflation in the 12 months through June.
For the first time, KRA is required to get parliamentary approval to effect the new rates following changes to the law that came into effect last year.
