7 Groups Challenge Backdated Taxes in Court
The Kenya Human Rights Commission, along with six other organizations, has taken legal action to contest the retroactive implementation of the Affordable Housing Levy. This levy, initially established at 1.5% of total salaries in the Finance Act of 2023, is being questioned in court.
In the legal papers submitted to the Nairobi High Court and reviewed by GossipA2Z.Com, the individuals filing the petition are requesting that the restraining orders placed on the collection of taxes from previous dates be revoked.
They contended that if specific elements of the Finance Act were deemed unconstitutional by the courts, the taxes that were taken out wouldn’t be reimbursed.
Additional organizations that have become a part of the legal action include Katiba Institute, The Institute for Social Accountability (TISA), Transparency International Kenya, International Commission of Jurists – Kenya, Siasa Place, and Tribeless Youth.
“Accordingly, Petitioners seek a conservatory order suspending specific provisions whose implementation has an irreversible effect and cannot be refunded,” read the Court documents in part.
“Giving the Act retrospective effect to July 1, 2023, as opposed to the date of Court of Appeal ruling lifting the conservatory orders is akin to punishing the petitioners for daring to question the measure in court and should be suspended,” the activists added.
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In addition to pursuing action related to the Housing Fund, the group is also aiming to obtain court orders to prevent the enforcement of a rise in import taxes on glass bottles from 25 percent to 35 percent.
The individuals submitting the request also implored the court to temporarily halt the enforcement of taxes until the petition is reviewed and decided upon.
It was also requested that the matter be heard urgently over its effects on the public.
“Petitioners have an arguable case against these amendments and contend that the adverse impact on health, lives, and livelihoods is immediate and irreversible without conservatory orders,” read the petition in part.
The request from the seven civic organizations pertained to the action taken by the Ministry of Lands to retroactively apply the 1.5 percent Housing Fund starting from July 1st. This decision will result in employees being taxed twice for the Housing Fund in the upcoming month of August.
Employers will be required to pay twice the amount due, as the tax was not enforced in the previous month due to a temporary court order issued in response to a petition submitted by Senator Okiya Omtatah from Busia.
7 Groups Challenge Backdated Taxes in Court
