KRA to Deduct Teachers 1.5% housing levy Despite Court Order
Despite a court order to prohibit collection, the Kenya Revenue Authority (KRA) was still able to deduct the 1.5% housing fee.
According to sources close to the tax collector, there are no intentions to discontinue the 1.5% housing fund deduction made by employees under Finance Act 2023.
Judge Mugure Thande of the High Court rejected to overturn rulings suspending the Finance Act 2023, which proposes to take 1.5% of employees’ gross salaries and put them towards a housing fund.
The judge decided that the petitioners (Busia senator Okiya Omtatah and others) had made their case and added that the public would suffer if the injunction were lifted.
The judge also ordered that the file be sent to Chief Justice Martha Koome, who would appoint a three-judge bench to hear the case and render a decision.
The Finance Act 2023 has however continued to be implemented despite court rulings against it by the Kenya Kwanza administration.
The Act was suspended by the court, but the Energy and Petroleum Regulatory Authority (EPRA), for instance, has declined to reinstate the 16% tax.
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According to EPRA, the adjustments were made in response to the Finance Bill 2023, which mandates that the Value Added Tax (VAT) on fuel double from 8% to 16% starting on July 1, 2023.
The KK government intends to implement the Sh3.6 trillion budget by increasing taxes through the National Treasury.
After the High Court’s judgement freezing the Finance Act 2023, Teachers Service Commission (TSC) teachers were hoping for a higher benefit in their July salary.
Over 350,000 teachers and secretariat employees who work for the PNP will receive salary raises starting in July thanks to money that the National Treasury has already released to TSC in the amount of sh. 9.1 billion.
President William Ruto stated that the 7% to 10% pay increase for teachers and civil personnel is intended to protect public employees from the difficult economic conditions.
KRA to Deduct Teachers 1.5% housing levy Despite Court Order
“I am aware that the SRC has proposed raising the pay for many cadres of public employees, including government officials. Therefore, we have decided that from tomorrow, the pay of our teachers, police officers, military personnel, and government employees will be increased by 7 to 10%, stated Ruto at the KICC launch of the new e-citizen platform.
Teachers will receive a pay increase of 7% in the first fiscal year (2023-2024), 8% in the second (2024-2025), 9% in the third (2025-2026), and 10% in the fourth (2026-2027).
