A ruling by the High Court stopped the charging of single business permit fees on certain professions that includes Real Estate agents registered under
the Estate Agents CAP.533. This is because charging such fees would amount to
double taxation.
Since 2010, there are two layers of Government, National and County
Government. The National Government does have its own mandates and levies taxes
on some functions. However, some functions are levied by the County Government
in areas where the services fall within the County and where there are no
similar taxes levied by the National Government. Once the National Government
levies a particular tax, the same cannot be levied by the County Government.
In Constitutional Petition No. 97 of 2016, The Kenya Pharmaceutical
Association and Pharmaceutical Society of Kenya sought the Courtâs
intervention to prohibit County Governments from demanding, seeking or
receiving applications for Single Business Permits or fees for such application
or permit or license or otherwise from its members. The Judge explained
the crucial difference between trade license fees and practicing license
fees stating that the County Government is prohibited from issuance of
Regulatory Licenses. The trade licensing fee is paid for trading in the County.
The Judge further reiterated that the function of the County Government is
trade development and regulation which excludes the regulation of
professions which render services only.
In the Fourth Schedule to the Constitution, among the services devolved
to the County Government is Trade Development and Regulation which includes:
(a)â¦â¦
(b) Trade licensing (excluding regulation of professionals).
The County Government is therefore prohibited from issuing regulatory
licenses for professionals under which real
estate agents falls under.
To take advantage of this regulation, you
must be registered with The
Estate Agents Registration Board.
Read the blog below on how to register as a
real estate agent and the process of registering as a real estate agent in
Kenya.
How
to register with Estate Agents Registration Board as a real estate agent in
Kenya
What other professionals do not pay single
business permits?
Blacksâ Law Dictionary 10th Edition at page 1903 defines profession as âA
vocation requiring advanced education and training especially one of the three
traditional learned professions â Law, Medicine and the Ministry.â
Concise Oxford English Dictionary 12th Edition defines profession
as âpaid occupation, especially one involving training and a formal
qualification.â]
So registered professionals like accountants,
surveyors, medical practitioners, engineers, accountants and lawyers may rely
on court judgements not to pay the single business permit fees.
Some cases to rely on are:
· High Court of Kenya at
Nyahururu J.R.NO.8 OF 2017
· High
Court in Nakuru Review 14 or 2014.
· Constitutional
Petition No. 97 of 2016
· Civil Application No. Nai 2
Of 2000
Do Pharmacies need to pay for single business
permits?
Every pharmacy needs to pay for single
business permits.
This was determined by J. Mativo in Petition
97/2016, the Kenya Pharmaceutical Association of Kenya Vs Nairobi County
Government and 46 others County Governments. The court held that
they are liable to pay trade licenses because they also sell pharmaceutical
goods. The court said:
âPharmacy is a profession but to the extent that it also involves
selling of pharmaceutical products. It is a trade as opposed to a profession
such as law or Architecture which render services only. By being asked to pay
trade licenses, for their business premises, the County Government cannot in
any manner be said to be regulating or controlling the profession.â
Let us know anything we may have missed on
the comment section below.