President Uhuru Kenyatta has been dealt a major blow after a High Court ruling on Wednesday.The High Court ruled that the proposed Robin Hood taxes in the Finance Bill 2018 was unconstitutional.
The court also ruled that the Treasury erred in instituting collection before enactment. Last month, MPs rejected the introduction of new legislation targeting bank transfers allowing Treasury to tax 0.05 per cent on bank transfers above Sh500,000.
The MPs had complained that this would open the door for Government to tax employees’ salaries.In July Rights Activist Okiya Omtata moved to court seeking to bar the National Treasury and Kenya Revenue Authority (KRA) from implementing any taxes proposed in the Finance Bill 2018.