KRA to Appeal Court Order Suspending Implementation of Minimum Tax

KRA says it will take the Minimum Tax matter to the Court of Appeal.

KRA Commissioner General James Mburu I PHOTO: Courtesy

The Kenya Revenue Authority (KRA) on Tuesday said it is going to appeal High Court conservatory orders to temporarily suspend the implementation of the Minimum Tax pending the hearing and determination of the Petition.

The case was filed by the Kitengela Bar Owners Association against the National Assembly, KRA and the Attorney General.

A similar suit was filed in March by the Kenya Association of Manufacturers (KAM), Retailers Association of Kenya (RAK) and Kenya Flower Council (KFC) in Nairobi.

KRA in a statement seen by Khusoko, sought an early hearing date and the court has agreed to hear and determine the matter before the second instalment falls due.

“KRA shall abide by the ruling issued by the Court and await the outcome of the main petition slated for hearing on May 19, 2021. Those who have already paid the tax will retain it as a credit in their iTax ledger pending the outcome of the petitions,” the statement reads.

Justice George Odunga granted the conservatory orders on Monday restraining KRA from collecting the tax at the rate of one per cent of the gross turnover which is due Tuesday, April 20.