The court of Appeal on 31st July 2024 ruled on Civil Appeal No. E003 of 2023 ordering the Finance Act 2023 unconstitutional. Subsequently, it is expected that from now on, the tax laws and regulations that had been affected by the Finance Act 2023 may revert to provisions under the Finance Act 2022.
On the question of whether employees and employers will continue to contribute and remit the Affordable Housing Levy, the ruling contains extensive explanation of the court’s observations and persuasions regarding the constitutionality of the Affordable Housing Levy.
Accordingly, the court dismissed the appeals against the findings that Sections 84,88 and 89 of the Finance Act 2023 are unconstitutional on the ground that the issues relating to the said sections are now moot.
Following the actions of the National Assembly from 7th December 2023 when the Affordable Housing Bill was tabled to address the concerns that had previously been raised by the High Court, through to 19th March 2024 when the Affordable Housing Act 2024 received presidential assent, issues relating to Sections 84, 88 and 89 of the Finance Act 2023 had been rendered moot.
The commencement date of the Affordable Housing Act 2024 was 22nd March 2024.
Consequently, the Affordable Housing Act 2024 is not subject to the Finance Act 2023 nullity.