KRA chief risks jail term for contempt of court over Excise Duty
Commissioner General Githii Mburu (pictured) risks a jail term for contempt of court after enforcing Excise Duty on a number of products even after the High Court temporarily stopped the imposition.
A suit filed by city lawyer Mwaura Kabata, states that the taxman is already in contempt since the High Court had directed that the status quo be maintained.
“This is borne of the fact that, despite orders for the maintenance of status quo, the Commissioner-General has actively been pre-preparing his collection platform system, and in effect rolled out new rates only awaiting the effective date that so happens to be the date that Status Quo orders lapse,” argues Kabata.
Justice James Makau in November, 2021 directed that the status quo be maintained, extending his orders on the imposition of Excise Duty on petroleum products.
High Court had late last year issued temporary orders stopping KRA from adjusting Excise Duty for petroleum products upwards that was to take effect from October 1, last year.
While issuing the orders, Makau cited lack of public participation and negative effect the adjusted prices will have on Kenyans.
Judge said the rise would pile more pressure on Kenyans, who are already grappling with high living cost. Makau added that public participation was not conducted before the decision was made. A youth group from Korogocho under the name UFANISI Centre had moved to court to oppose the adjustment.
