KSh 300 billion held up in about 1,000 legal disputes

The Government of Kenya is drafting a bill to demand mandatory payment of taxes for tax disputes still in court.

The move will enable the treasury to collect more revenue and fill in the widening budget deficit. The National Treasury increased its 2019-2020 budget deficit from 5.9% to 6.2% due to revenue shortfalls.

The draft bill will act as an intervention for the long time it takes to settle court cases. Uhuru cited that there at least KSh 300 billion held up in about 1,000 legal disputes. The cases often take a long time, holding up otherwise useful revenue.

“Most of these cases have stayed for more than two years,” said Uhuru.

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The president believes that an out of court process is more suitable to curb tax evasion, saving up time.

“Do not punish people who have not committed a crime, especially if they did not evade paying taxes to steal. Engage them first before taking them to court, it is easier and not as time-consuming as court processes,” Kenyatta said.

The draft bill will be presented in the next four months.