The Kenya Revenue Authority has vowed to appeal a Machakos High Court decision to stop the Minimum tax policy.
In a statement, the taxman said it was displeased with the reasons.
“The Court was of the opinion that taxation cannot be fair when a system of tax is introduced to diminish the capital of a business.
The Kenya Revenue Authority respectfully disagrees with the findings of the Court and will prefer an appeal to the Court of Appeal to challenge this finding.”
The High Court barred KRA after finding section 12D of the Income Tax Act unconstitutional.
Last year, the National Assembly amended the Income Tax Act to give KRA powers to collect minimum tax at the rate of one percent of the gross from companies making revenues of at least Sh50 million, starting January 2021.
But business stakeholders faulted the government for introducing a new tax regime at a time when firms and the economy, in general, are struggling due to disruptions caused by the Covid-19 pandemic.
