KRA Appeals High Court Ruling on Gross Business Turnover 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) said on Monday it was appealing against the High Court’s Ruling that annulled the implementation of the minimum tax.

The tax collector through its Commissioner for Legal Services and Board Coordination said the authority ‘respectfully disagrees with the findings of the court” that said it was unconstitutional for subjecting taxpayers to double taxation and was punitive in nature.

The minimum tax – calculated at 1 per cent of gross turnover – went into effect in January.

As a result, KRA will prefer an appeal to the Court of Appeal to challenge the finding the commissioner said.

“This is to ensure that KRA continues to review and improve on tax policies in order to reduce the tax burden while ensuring that every citizen contributes their fair share of tax.”

The Kenya Association of Manufacturers, The Institute of Certified Public Accountants of Kenya, Kenya Flower Council, Retail Trade Association and Isinya East Sub-County Bar Owners Association, who challenged the tax, lauded the ruling.

The decision “provides much-needed relief to businesses that continue to strain under the weight of over-taxation and unpredictability in the country today,” Mucai Kunyiha, chairman of KAM, said in a statement.