The High Court has extended the suspension of the implementation of Finance Act 2023 to Monday next week.
Justice Mugure Thande on Wednesday, July 5 said she will give directions on Monday after a day-long virtual hearing, where the petitioner Senator Okiya Omtatah petitioned the court to pronounce itself on contempt of its initial orders.
Moreover, Prof Githu Muigai appearing for the State, challenged the petition arguing that it risked plunging the country into a financial crisis.
He told the court that granting orders sought by the petitioners would trigger a constitutional crisis.
“What the petitioners have done is that they have precipitated a constitutional crisis without precedent,” Muigai said.
Prof Githu stated that the seven petitioners had mislead the court.
“By misleading the court to suspend the Finance Act 2023, they have compromised all other budget statutes including the Appropriation Act 2023.” He told the judge.
However, the Busia Senator who was joined by Rarieda MP Otiende Amollo dismissed Muigai’s position as baseless.
Nonetheless, the High Court had suspended the Finance Act 2023 on June 30 amid uproar over tax proposals including the doubling of Value Added Tax (VAT) on fuel.
As such, Justice Thande had directed the State to file a response by Tuesday, July 4.
Also Read: Senator Okiya Omtatah Amends His Petition Challenging Finance Bill 2023
The court orders stopped the government from levying any taxes under the new Act, including the 8 per cent VAT increment on fuel.
However, the Energy and Petroleum Regulatory Authority (EPRA) went ahead to effect the eight per cent increment.
The petitioners in their application contested the passage of twenty-two sections of the Act. They also challenged adoption of another 40 provisions without the input of the Senate arguing the said tax proposals required an endorsement by the Senate.
Furthermore, they challenged public participation in the law-making process as being inadequate.
