The Tax Appeals Tribunal has ordered the Rift Valley Railways (RVR) to pay the Kenya Revenue Authority (KRA) Ksh1.69 billion in unremitted tax.
RVR had petitioned to block KRA from recovering the amount, arguing that some of the equipment it imported among them locomotives and diesel engines were tax exempt.
The tribunal however found that the items were taxable, hence KRA was right in demanding the amount.
“This therefore leaves room for one reasonable conclusion; that the appellant (RVR) was not granted remission in respect of the locomotives and as such the taxes as assessed by the respondent (KRA) are properly due and payable by the appellant,” the Tribunal ruled.
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