Motorists and high-income earners are among the biggest winners after the Court of Appeal declared the Finance Act 2023 unconstitutional.
The nullified law had introduced new taxes and raised others including doubling value-added tax (VAT) on petroleum products to 16 percent and additional raids on payslips of those earning from Sh500,000 per month. It introduced a new tax band of 32.5 percent for income of between Sh500,000 and Sh800,000. For income exceeding Sh800,000, a new top tax band of 35 percent was also introduced.
