The Finance Bill has been one that has invigorated much debate both within Parliament and in the public domain. Since its introduction on budget day 2011, there has been much intrigue going on about the Bill. On Friday's April 6th Business Daily Letter titled "Law empowers KRA to collect taxes prior to enactment of Finance Bill", the Senior Deputy Commissioner of the Kenya Revenue Authority correctly asserted that even though the Finance Bill 2011 has not been passed, the enforcement of tax collection by KRA stands legal by virtue of The Provisional Collection of Taxes Act Cap 415 Order 2011 in which the Finance Minister invoked on the 8th of June 2011. However, it must be noted that the Act in itself does not envision a scenario as the one that is being played out at present. In fact the act explicitly provides under section 3 that such an order invoked by the Minister would cease to be valid if the Bill is not introduced into Parliament within four months after order is made, on the expiration of six months after the order is made, on passage of the Bill or if the Bill is either rejected by Parliament, withdrawn or on consideration of the Bill by the National Assembly, the bill is adjourned sine die (without delay).
It is quite evident that the order has been in place for more than six months but what KRA could be banking on to maintain the order is the aspect of the various adjournments by the National Assembly on debate of the Bill. However, it must be noted that the adjournments have not been "without delay" seeing that four months into the new year, 2012, the Bill is yet to be effectively debated. The last time the Bill came to the house for debate on 15th of March 2012, the Deputy Speaker deferred discussion on the Bill espousing that it was not the role of the Chair of the National Assembly to move Bills but rather the Government. In fact, the Deputy Speaker went as far as asking the members of Parliament to go to court or amend the law.
The Government has erred in not fulfilling the law and indeed on the basis of the fact that much of the adjournment has been due to lack of pro-activity by Treasury to move the Bill then indeed it is quite clear there is mischief involved. But then again, unless Kenyans go to court to stop this mischief, there can be pretty much little that can stop the KRA from collecting these taxes.
