Treasury flouted law on fuel tax, MPs say
SEE ALSO :Few options left to Rotich on taxes“They were never tabled before the House and they are not on the schedule of any parliamentary proceedings.” Treasury last year proposed implementing 16 per cent VAT on petroleum products but this was later halved to eight per cent in the Finance Bill 2018 after intense lobbying and complaints from the private sector and members of the public. KRA commissioners present threw the ball in Treasury’s court, saying the ministry was best placed to clarify whether Parliament was duly informed. “The two key documents we received from the Treasury are the minister’s budget speech as well as the letter he sent to parliament,” said Mohamed Omar, commissioner in charge of strategy, innovation and risk management at KRA. The revelation now opens the Government to litigation on the legal standing of the tax that was roundly opposed including attempts by Parliament to block enactment of the Finance Act 2018.
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