A Kenyan appeals court has ruled that a series of taxes introduced in 2023 are unconstitutional, jeopardizing a crucial revenue source for the government. The taxes, part of President William Ruto’s revenue plan, were expected to generate approximately $1.6 billion for the fiscal year that ended in June. The contested taxes included a doubled value-added tax on fuel, a housing tax, and a higher top personal income tax rate. The court ruled that the law violated the East African country’s budget laws and that the process for enacting the taxes was “fundamentally flawed” and unconstitutional. The government may appeal the ruling to Kenya’s Supreme Court. President Ruto argues that the taxes are essential for funding development programs and managing significant public debt. The court’s decision follows the government’s withdrawal of this year’s finance bill after deadly protests erupted over the tax increases.
SOURCE: BUSINESS INSIDER
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