7 Organizations File a Lawsuit Against Backdated Taxes
7 organisation file a lawsuit against backdated taxes.The Kenya Human Rights Commission, along with six other organizations, has filed a lawsuit.
Reason for filing a lawsuit
1.challenge the backdating of the Affordable Housing Levy. The Levy was set at 1.5% of gross earnings in the Finance Act 2023. What do petitioners need?
1.They want conservatory orders made against the collection of backdated taxes. According to court documents submitted before the Nairobi High Court and viewed by Kenyans. They contended that if the courts rule that some portions of the Finance Act are illegal, the taxes deducted will not be returned. This was supported by ; Katiba Institute, The Institute for Social Accountability (TISA), Transparency International Kenya, the International Commission of Jurists – Kenya, Siasa Place and Tribeless Youth .
The court stated that petitioners seek a conservatory order accordingly .
This will suspend specific provisions whose implementation has an irreversible effect and cannot be refunded. The complainers Said giving the Act retroactive effect to July 1, 2023, rather than the date of the Court of Appeal ruling lifting the conservatory orders.Its tantamount to punishing the petitioners for daring to challenge the measure in court.It should be suspended.
Aside from the Housing Fund, the team is also attempting to prevent the introduction of a 25% to 35% increase in excise duty on imported glass bottles. The petitioners also requested that the court delay the imposition of taxes until the case is heard and decided.
According to the petition,petitioners have an arguable case against these amendments. They contend that the adverse impact on health, lives, and livelihoods is immediate and irreversible without conservatory orders.
Petition for seven civil groups
This is in response to the Ministry of Lands’ decision to backdate the 1.5 percent Housing Fund to July 1. This decision will result in employees being taxed twice for the Housing Fund in August. Employers would also pay twice because the tax was not implemented last month. This was due to a conservatory injunction issued in response to a petition submitted by Busia Senator Okiya Omtatah.
