THE GOVERNMENT of President William Ruto has suffered a major blow after the High Court outlawed the law to charge rent to employees and employers.
This order to cancel this original tax of one hundred and five points charged to each worker and the same rate to be paid by employers is a great relief.
The good news is that the tax authority in KRA will have to return the billions of money it had received through the implementation of this illegal law to workers and employers.
Judges David Majanja, Christine Meoli and Lawrence Mugambi said parliament was wrong to approve this house tax without enacting laws to control it.
“It is against the constitution to approve house rent while there is no special fund to keep the money. This court has reached a decision that law number 84 of the Finance Laws 2023 conflicts with the Constitution and is illegal,” said Judges Majanja, Meoli and Mugambi.
The judges said the lawmakers approved it illegally. The court criticized the Minister of Housing for ordering KRA to receive money from workers and employers illegally.
“The authority of KRA is allowed to receive taxes and not housing fees from citizens,” the court said.
Judges Majanja, Meoli and Mugambi outlawed the house tax when they gave a decision in a case where Busia Senator Okoiti Okiya Omutatah challenged the Finance Act 2023 saying the national assembly was wrong to authorize the citizens to be taxed.
As soon as the judges gave their decision, the attorney general requested that the order be suspended for 45 days before appealing.
Mr Omutatah, Member of Parliament for Rarieda Otieno Amollo and the lawyers’ association in LSK through lawyer Eric Theuri protested saying “the court cannot allow the wrongdoing to continue.”