Businesses are hopeful as they wait the Kenya Revenue Authority (KRA) to refund money it collected as minimum tax. The tax body argued that the High Court ruling that Section 12D of the Income Tax unconstitutional means that the taxman has to start refunding the collected revenues.

KRA has however moved to the Court of Appeal to challenge the High Court’s judgement made on September 20, 2021; that stopped it from collecting the minimum tax at the rate of 1% of the gross turnover.

This minimum turnover is based on gross turnover and not gains or profits, and that all businesses even those making loses are required to pay.

High Court Judge Justice George Odunga ruled that the government’s plan to impose a minimum tax on businesses even when the business reports loss is illegal.

The minimum tax took effect in January 2021 after changes were made on the Income Tax Act in 2020. KRA’s move to the Court of Appeal shows its attempt to enforce the collection of Ksh 21 billion from businesses in the year to June, 2022 an effort to plug its revenue shortfalls.

Treasury CS Ukur Yatani told Parliament that the High Court’s judgement left KRA with sh 22 billion budget deficit.

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  • Sarah should be jailed , it's so sad to kill someone pretending to be his partner, naomba Sheria uchukuliwe ipasavyo, najua pesa uongea lakini ingekua ni mtoto wako amefanyiwa hvi ,how how could you feel, angekua ni umaskini Hana chochote angekua jela sasa hvi na hata angepewa ruhusa ya kuongea , tunajua wenye pesa na umaskini ni tafauti lakini mungu yuko , Kenya si nchi mtu anaeza tamani kuishi kulingana na vitendo vinaendelea kutendwa na serikali tuko nayo , mungu tutetee na serikali wape hukumu mbele yao.

  • Your Comment my condolensed to family of Kigenda and her beautiful daughter Amanda..promoted to glory.. its the only way thy thee into it...Inshallah aamyn

  • Your Comment
    It is Building Bridges Initiative verses Breaking Bridges Initiative.It gonna be nasty with casualties.

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