Judges Begin Hearing Petition Against Finance Act Implementation Amidst Backdating Controversy

07, Aug 2023 / 2 min read/ By Livenow Africa

Three-Judge Bench to Deliberate on Challenges to President Ruto's New Tax Measures

Today, a three-judge bench led by Chief Justice Martha Koome will commence hearings on a petition challenging the implementation of President William Ruto's recent tax measures. The Finance Act 2023, which has been at the center of controversy, is facing scrutiny from human rights groups and concerned citizens.

Human rights organizations are urging the court to intervene and halt the government's decision to backdate the new tax measures to July 1. The Court of Appeal previously lifted the High Court's orders that temporarily suspended the implementation of the Finance Act 2023, allowing the government to start collecting the levies.

As a result, the government has since backdated the remittance of the housing tax to July 1 and requested employers to remit the deductions during the payment of August salaries.

Seven human rights groups, including the Kenya Human Rights Commission, Katiba Institute, The Institute for Social Accountability, Transparency International Kenya, International Commission of Jurists, Siasa Place, and Tribeless Youth, have filed an urgent case seeking to prevent the government from backdating the taxes. They argue that backdating the taxes could have severe implications for the health and livelihoods of Kenyans if conservatory orders are not issued.

In their petition, the groups are specifically seeking the suspension of particular sections of the Finance Act, especially those introducing the housing tax and increasing VAT on fuel products.

The three judges, David Majanja (presiding), Christine Meoli, and Lawrence Mugambi, will convene at the Milimani law courts in Nairobi to hear the case.

Meanwhile, the case brought forward by Busia Senator Okiya Omtatah will question the legality of the Finance Act. Omtatah argues that the Act did not pass through the Senate, yet it affects matters concerning counties, such as housing.

In addition to this significant hearing, former Busia Governor Sospeter Ojaamong is scheduled to defend himself against charges of embezzling Sh9 million from the county coffers during his tenure.

At the Chief Magistrate's court, Kitusuru MCA Alvin Palapala's pretrial proceedings will take place. Palapala was previously charged with subversive activities, along with other ODM members, after authorities accused them of recruiting and planning violent anti-government protests.

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