bY SAM ALFAN.
Attorney General Dorcas Oduor has opposed a petition by a city lawyer challenging the government’s move to exempt Blue Nile Rolling Mills ltd from paying Sh188 million of taxes.
The AG argues that petition by lawyer Apollo Mboya does not disclose the source of any information or his belief as required by the law.
She submitted that the lawyer saying he has not demonstrated any prejudice he will suffer if the orders sought are not issued.
The lawyer moved to court seeking to block the government from enforcing the Operating Framework Agreement (SOFA) dated 30th January 2020 and any subsequent amendment and or variation.
But according to the Attorney General, lawyer Mboya is seeking orders to infringe on the constitutional mandates and discretion of state offices at interlocutory stage contrary to the doctrine of separation of powers.
“The lawyer seeks to unconstitutionally undermine the authority of the legislature as expressly provided under Article 210(2) of the constitution and also the functions and authority of the auditor general,” says AG while opposing the case.
The AG further argue that lawyer Mboya is improperly seeking the usurpation of the function the national government in the determination of national economic policies and economic activities which owing to its polycentric nature is within the remit of political organs of State and not the judiciary..
Lawyer Mboya argues that he moved to court with utmost national public interest in the wake of an economic crisis distressing all citizenry.
He said the provisions introducing and legitimizing such frameworks between the government and ‘special’ entities arbitrarily as it unjustifiably grants them blanket tax exemptions and reduced tax rates.
The lawyer said the provisions introducing and legitimizing such frameworks between the government and ‘special’ entities arbitrarily as it unjustifiably grants them blanket tax exemptions and reduced tax rates.
Mboya said the majority of Kenyans and manufacturers will suffer the effects of a dwindling economy with little reprieve owing to the continued and excessive loss of colossal amounts.
“Without a shred of doubt, CS Treasury and Trade and Investment, unless the conservatory orders sought herein are granted, will continue exempting companies from numerous taxes to the detriment of Kenyans,” he said.
Mboya added if the position is suspended, nothing that will be lost to both the government and Blue Nile Rolling Mills ltd since taxation is a burden that should be borne by every Kenyan in the country through a sound legislative process.
He said the continued application and or implementation of the regulations and the SOFA granting an unfair and unconstitutional advantage to Blue Nile Rolling Mills ltd against other steel manufacturers will imminently and undoubtedly sound a death knell on their businesses as the same will no longer be commercially viable owing to the extremely unfair and uncompetitive market resulting therefrom.
“In the inverse, where the interim relief is granted, Treasury, Trade, KRA and AG will not suffer any prejudice whatsoever as where the Court finds the provisions on the Special Operating Framework Arrangement to be legal and Constitutional, the Blue Nile Rolling Mills ltd will enjoy the exemption granted,” he said.
He said the agreement has orchestrated the colossal loss of revenue to the government in the sum of Sh188.9 million.
