A road construction company has challenged the imposition and demand for cess by the county government of Kwale for the murram it uses.
According to the company, it uses the murram excavated from its leased quarry sites within the county.
H Young is seeking a declaration that the county government’s demand for cess from it for the murram is unlawful, illegal and unconstitutional.
A road construction company has challenged the imposition and demand for cess by the county government of Kwale for the murram it uses.
H Young and Co (EA) Ltd which is undertaking the grading and other works on the Mwache Junction-Tsunza Mteza section says it was forced to pay Sh110,600 cess for murram without legal basis.
According to the company, it uses the murram excavated from its leased quarry sites within the county.
It argues that the Kwale Finance Act 2014 does not describe the service that the devolved unit provides in exchange for the fee or charge demanded for cess for ballast.
“The petitioner contested the demand (for payment of cess) through its letter calling for an amicable solution of the dispute noting the glaring contravention of the law,” the company says.
It adds that upon receipt of the letter, the county government through its officers clamped and impounded its two trucks, forcing it to pay the cess.
H Young is seeking a declaration that the county government’s demand for cess from it for the murram is unlawful, illegal and unconstitutional.
It is also seeking an order of injunction directing the county government to stop charging cess for murram.
The construction company says that the land used as a burrow pit is privately owned thus the owners are liable to pay taxes to the county government and that land rate charges are covered under the Finance Act.
“By imposing cess over murram amounts to double taxation,” argues the construction company adding that the road project is of national importance with benefits among them job creation within the community.
H Young further argues that the claim for the payment of the cess is a ploy to intimidate and coerce it to pay money that is not due and owing.
“The act of the county government to demand the payment of cess over murram without proper legal foundation or basis is an affront to the Constitution and the Mining Act,2016,” argues the company.
TH Young, which has also sued the Kwale County Assembly also argues that it does not engage in the market sale of murram but uses it for construction.
In his affidavit, Chief Officer Finance and Economic Planning at the county government Mr Onduko Alex says payment of cess is in accordance with the Finance Act and Kwale County Quarrying Act 2016.
“The cess levied by the county government is used to discharge its duties towards the county residents and all persons using the roads under its jurisdiction,” says Mr Alex.
The case has been scheduled for mention on April 8.
