Court deals KRA a blow in Sh350m tax row with bank

The High Court ruled that KRA cannot collect levies from fees that banks rake in from card transactions. [iStockphoto]

The Kenya Revenue Authority (KRA) has been dealt a major blow after High Court ruled that it cannot collect levies from fees that banks rake in from card transactions.

Justice David Manjanja has agreed with Standard Chartered Bank that KRA cannot collect both the 16 per cent value-added tax (VAT) and excise duty on fees paid by merchants on the use of point-of-sale (POS) machines.