High Court quashes KRA’s bid to adjust tax on petroleum products

High Court has issued temporary conservatory orders quashing Kenya Revenue Authority’s decision to adjust excise duty rates for petroleum products.

This is after UFANISI Centre, a group of youth from Korogocho, moved to court to oppose the tax adjustment.

Justice James Makau said there will be danger to Kenyans if there is increase of fuel prices and if KRA adjusts the excise duty rates as proposed.

“I find the application meets the threshold for interim orders. The petitioners have established they have a prima facie case with a likelihood of success,” he said.

However, the decision is pending approval by the Cabinet Secretary of National Treasury Ukur Yatani.

The lobby group wanted the court to suspend the move to have prices of fuel in the country go up again starting from October 1.

Through  lawyer Kenneth Amondi, the youths say the decision by KRA Commissioner General Githii Mburu to adjust excise duty for petroleum products though discretionary is bound to burden the already overtaxed Kenyans.

KRA announced plans to increase excise duty rates on fuel and excisable goods by 4.97 per cent.

“Kenya Revenue Authority would therefore like to inform manufacturers and importers of excisable goods falling under the specific rate category and members of the public that the Commissioner General will adjust rates of excise duty using the avarage inflation rate for the Financial Year 2020/2021 of 4.97 per cent, as determined by the Kenya National Bureau of Statistics,” stated KRA.

This increase on taxes for the commodities will be added to the recently reviewed fuel prices that have left struggling Kenyans strained economically.