In a bold move, Dr. Magare Gikenyi, a Nakuru-based doctor, has taken a groundbreaking step by filing a petition in the High Court of Nairobi, advocating for the taxation of entities traditionally exempted from paying taxes, particularly churches.
The crux of Dr. Gikenyi’s argument revolves around the concept of fairness and equity in tax distribution. He emphasizes the constitutional principle of sharing the tax burdepn fairly among all individuals and sectors of the economy, as enshrined in Article 209 of Kenya’s Constitution.
The petition addresses the exemptions granted to certain groups, such as churches, mosques, temples, some NGOs, and individuals, allowing them to avoid taxation on various financial streams like tithes, offerings, and donations. Dr. Gikenyi argues that this exemption creates an imbalance, placing the tax burden squarely on the shoulders of others.
The Income Tax Act, as highlighted in the petition, seemingly contradicts the constitutional provisions of fair tax sharing. Sections 3(2) and 13 of the Income Tax Act Cap 470 exempt specific groups, leading to what Dr. Gikenyi describes as discriminatory practices against the wider populace.
While the petition primarily targets entities like churches and religious organizations, its implications are far-reaching. Dr. Gikenyi’s stance aligns with President William Ruto’s call for broadening the tax base to ensure equitable contributions from all sectors of society.
The respondents in the case include government bodies such as the Attorney General, CS Treasury and Economic Planning, Kenya Revenue Authority, The Senate, and the National Assembly. Additionally, prominent religious bodies, including the National Council of Churches of Kenya, the Kenya Conference of Catholic Bishops, the Evangelical Alliance of Kenya, and the Supreme Council of Kenya Muslims, are involved as interested parties.
The petition raises critical questions about the nature of taxation, equity, and the responsibilities of various sectors in contributing to national development. It underscores the need for a comprehensive review of tax policies to ensure fairness and equity while fostering national growth and development.
This bold move by Dr. Gikenyi challenges conventional norms and invites a significant debate on the role of taxation in Kenya’s socio-economic landscape. It prompts us to reflect on the principles of fairness and equity, encouraging a dialogue that could potentially reshape the country’s fiscal policies for the better.
The outcome of this petition could pave the way for a fairer and more equitable tax system in Kenya, ensuring that the tax burden is distributed evenly among all, irrespective of affiliation or status.
