The Kenya Revenue Authority (KRA) on Monday dismissed a case filed by activist Okiya Omtatah challenging the imposition of the 16% Value Added Tax (VAT) on petroleum products.
KRA termed Omtatah’s petition as baseless and one that lacks merit, urging the court to dismiss it in its entirety.
Omtatah moved to court last week, arguing that the 16 percent levy on fuel products, which came into effect on September 1, is irregular and unconstitutional.
The activist submitted that enforcement of the VAT on fuel was done in defiance of an express decision by Parliament to suspend its implementation.
In its response to the petition, KRA averred that the Constitution grants the national government powers to impose income tax , VAT and other duties on import and export goods.
Through lawyer Kenneth Kirugi, the taxman argued that a provision imposing tax cannot be said to be unconstitutional for reasons that the same is deemed oppressive.
