M-Kopa had moved to court seeking orders barring the taxman from charging value-added tax (VAT) on solar-powered digital television sets, a product targeting low-income consumers mainly in remote rural areas off the national power grid.
The judge found that the KRA, after permitting M-Kopa to import the solar-powered television sets without imposing VAT in the past, could not turn around and impose the same and directed the KRA to refund Sh35.7 million it had collected from the firm.
M-Kopa says that last year the KRA rendered a private ruling on an application the firm had made with regard to solar-powered TV sets, which stated that the items were exempt from VAT.
The judge ruled that the private ruling was not withdrawn formally.
Source: Business Daily