In Summary
- The LSK seek urgent determination of the matter filed.
- They want the court to declare revenue collection under finance Act 2023 unconstitutional.
- The appellate court had lifted the orders stopping implementation of Finance Act.
The Law Society of Kenya (LSK) today petitioned the court to stop the implementation of the Finance Act 2023. Through that the government has directed the Kenya Revenue Authority (KRA) to backdated the tax collection module to July 2023.
The legal body has filed the case as urgent and wants the Constitutional and Human Rights Court to declare the new taxes unconstitutional.
In the application, LSK argues that the time is not ripe to increase the taxes as many Kenyans currently bare the bunts of economic hardship.
The lawyer’s association has also stated that the new taxes will hit Kenyan employers hard amid rising unemployment of many Kenyans contrary to president Ruto’s poll pledge.
ALSO READ Okiya Omtatah Moves To Court To Block Ruto’s Finance Bill
The Appeal
“THAT pending the hearing and determination of this Application inter parties, a Conservatory Order be and is hereby issued restraining the 2nd Respondent whether acting jointly or severally by themselves, their servants, agents, representatives or howsoever otherwise from the implementation, further implementation, administration, application and/or enforcement of Section 10 (2) (3) of the Income Tax Act as amended by Section 7 of the Finance Act, 2023,” reads part of the affidavit.
READ Also: Court of Appeal Lifts Conservatory Orders Barring Finance Act 2023
Appeals Court on July 28 lifted the orders stopping the implementation of the Finance Act,and allowed government to proceed with its implementation pending the determination of the case that was filed by Busia Senator Okiya Omtatah.
The Finance Act has faced opposition due to a raft of new taxes that will slash employees’ payslips, coming months after the government increased statutory deductions like NHIF and NSSF.
The issues raised by the opposition in their demand list in the much waited talks in the revocation of the Finance Act 2023
