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Minimum Tax High Court Ruling

On this day, 20th September 2021, High Court has ruled that minimum tax provisions are unconstitutional and void. In his ruling, Judge George Odunga ruled that “It results in diminishing capital for those making losses, while for those making profits the capital base is unaffected''.

Kenya Revenue Authority, has however, disagreed with the ruling and notes that it will challenge the ruling at the Court of Appeal.

The suit had been filed at Machakos High Court by Kitengela Bar Owners association against the National Assembly, the Kenya Revenue Authority, and Attorney General Paul Kihara.

The minimum tax was introduced by Treasury under the Finance Act 2020 which was charged at the rate of 1% of the turnover.