The Supreme Court on Tuesday August 20, 2024 issued a stay order, temporarily overturning the Court of Appeal ruling that nullified the Finance Act 2023.

The orders issued by the Supreme Court, are meant to allow the government to continue using the Finance Act 2023 for tax collection as the case continues. 

This is after the Court of Appeal’s ruling in July 2024 that declared the entire Finance Act 2023  unconstitutional. 

Consequently, the Court of Appeal ruling had caused uncertainty among employers and employees, who were raising concerns over some salary deductions.

In addition, nullification of the Act had created a dilemma in revenue collection after the withdrawal of Finance Bill 2024.

In its ruling, the Supreme Court highlighted that it considered public interest while preserving the status quo pending a final ruling of the case.

According to the apex court, there was a need for maintaining legal clarity and stability for both employers and taxpayers.

At the same time, the court set a timeline for further case proceedings, and scheduled virtual hearings on 10th and 11th September 2024.