Finance Act 2023: Court Summons EPRA Boss Daniel Kiptoo Over Implementation Of 16% VAT On Petrol

• Energy and Petroleum Regulatory Authority (EPRA) implemented the 16% Value Added Tax (VAT) on petroleum products despite a court order blocking Finance Act 2023
• High Court directed EPRA Director General Daniel Kiptoo to respond to why he disobeyed the order and effected the changes in pump prices
• This came as the three-judge bench led by Justice Daniel Majanja set the second hearing for the case to September 13, 2023

Energy and Petroleum Regulatory Authority (EPRA) director-general Daniel Kiptoo will now appear before the court to answer why he implemented the 16% VAT on petroleum products.

EPRA effected the changes in the Finance Act 2023, despite a court order blocking its implementation.

EPRA reviews pump prices

This saw the prices of super petrol, diesel and kerosene increase by KSh 13.49, KSh 12.39 and KSh 11.96, respectively, effective July 1, 2023.

In its first sitting on Monday, August 7, the High Court directed Kiptoo to show cause why he should not be judged for contempt of court after going against the court's decision to implement the new taxes.

Busia senator Okiya Omtatah filed an application requesting the court to jail Kiptoo for disobeying court orders suspending the implementation of the Finance Act 2023.

Omtata wants EPRA boss jailed

Omtatah said that he served the EPRA boss with orders suspending the implementation of the Act on Friday, June 30, through WhatsApp and email and begged him to pause the fuel price hike.

He accused the regulatory authority managing director of disobeying court orders and demanded fuel prices be reduced to match the market rates at the time the orders were issued.

The three-judge bench led by Justice Daniel Majanja declined to grant Omtata and co-petitioners conservatory orders on the Act.

The judges set the hearing of petitions to September 13, 2023.

The Court of Appeal lifted the orders stopping the implementation of the Act.

LSK challenges implementation of Finance Act 2023

President William Ruto's government implemented the Finance Act 2023 after the appellate court lifted stay orders.

Kenya Revenue Authority (KRA) effected changes to its tax systems to collect new taxes like the Housing Levy.

Law Society of Kenya (LSK) challenged the new law saying it violates the constitution and overburdens Kenyans.