The High Court has stopped the Kenya Revenue Authority (KRA) from collecting minimum tax introduced by the government last year.
In a sitting in Machakos, Justice George Odunga ruled that order will remain in force pending a petition filed by registered officials of the Isinya East Sub Ciunty Bar Owners Association.
“The death of a business is certainly not a damage that can be remedied by way of damages. That is why it’s in the interest of Justice that this court intervene to preserve the business and livelihood s of the petitioners,” he said.
Minimum tax is a base income tax payable by all persons regardless of whether or not they make a profit. It was introduced by the government through the Finance Act 2020.
The tax is payable where it exceeds the instalment tax payable to KRA.
Payments should be made on or before the 20th day of the fourth, sixth, ninth and 12th month of the year of income.