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LSK allowed to amend suit against stamp taxes

LSK allowed to amend suit against stamp taxes
KRA offices along Mombasa Road. PHOTO/@KRA/X
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The Law Society of Kenya (LSK) has been allowed to amend a petition seeking to suspend the proposed increase of fees on excise duty stamps.

Parties agreed to have the lawyers amend the petition after some prayers they were seeking were overtaken by events.

“No objection to the issue of amendment, I indicate that by consent that prayer 2 is allowed, leave to amend the petition is deemed as duly filed,” court noted

The High Court in February declined to stop the proposed increase of excise duty stamp cost, saying the petition by LSK was filed prematurely.

Justice Hedwig Ong’udi had ruled that the said regulations were at the draft stage and were yet to be gazetted and tabled in Parliament.

“With an incomplete legislative process, it would not be prudent for the court to exercise its mandate over the matter,” Judge noted.

LSK had moved to court to challenge the Excise Duty (Excise Goods Management System) (Amendment) Regulations, 2023 which was enacted by Kenya Revenue Authority and which were set to take effect on March 1. The adjustment was to increase the stamps of beer from Sh1.5 to Sh3 per stamp, wines including fortified ones and spirits exceeding 10 per cent from Sh2.8 to Sh5.0 per stamp. The adjustments will also affect bottled water, juices, cosmetics, tobacco and nicotine products.

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