MPs Be adviced Rotich taxes are illegal : Court rules

The High Court has faulted Treasury CS Henry Rotich saying he did not follow the Constitution when he presented the Finance Bill 2018.

This means that the tax imposed on mobile money transfer, imported vehicles, and bottled water is unconstitutional.

“….the provisional collection of Taxes and Duties Act 415 and the provisional collection of taxes and duties 2018 fail the constitutional test of validity,” Justice Wilfrida Okwany ruled.

According to the judge, the Finance Bill 2018 cannot be implemented before it becomes Finance Act.

She further stated that the Bill should have gone through the Parliamentary legislative process laid out in the constitution for approval and adoption by parliament and final assent by the president.

The two issues of concern were whether it was procedural for Treasury to start collecting the taxes proposed in the Finance Bill 2018 before enactment.

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