taxation

Court finds Kenya’s new tax law unconstitutional; calls government’s ‘vaccine’ for ‘virus’ of non- tax payments, ‘inappropriate’

Kenya’s high court has declared a controversial new tax law unconstitutional. The proposed new law would have seen taxpayers paying tax on gross turnover when they declared a loss or not enough profit to be billed for income tax. The government wanted the new law providing for a minimum tax to help state finances after Covid-19’s incursions on the fiscus. The decision is to go on appeal, but in the meantime the new tax cannot be levied.

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Kenya’s high court judge, David Odunga, had already suspended the newly introduced law, saying in April that it should be kept on ice until the dispute over its unconstitutionality had been argued and decided.

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