Ministers, MLAs to pay income tax on their own
SHIMLA: The Himachal Pradesh cabinet on Friday said that all ministers and MLas will pay their income tax themselves, which was till now being cleared by the state government.
The announcement came as the cabinet decided to promulgate an ordinance to omit section 12 of the Salaries and Allowances of Ministers (Himachal Pradesh) Act, 2000 and section 11-A of the Himachal Pradesh Legislative Assembly (Allowances and Pension of Members) Act, 1971 which exempt ministers and legislators from income tax on their salaries and allowances.
“The BJP government in Himachal Pradesh has decided to promulgate an ordinance to amend the act to ensure that the income tax of legislators is not paid by the government. This will save ₹2.5 lakh per legislator,” parliamentary affairs minister Suresh Bhardwaj said.
“This practice (government paying taxes for ministers, MLAs) was there for a long time and the BJP government led by chief minister Jai Ram Thakur has initiated the move to change the law,” he added.
The development also came close on the heels of a notice issued to the state government by Himachal Pradesh high court on a petition seeking to refrain the state government from paying the income tax of ministers and MLAs.
Opposition parties welcomed the state cabinet’s decision.
“The Congress is in favour of the decision,” leader of opposition Mukesh Agnihotri said.
CPI(M) legislator Rakesh Singha said: “It’s a correct decision although it should have been taken long ago.”
Experts believe the decision will help legislators understand the problems faced by taxpayers.
“Income tax is the largest revenue source for the Union government. The decision of the government is people-friendly and will help legislators develop a better understanding of the issues faced by taxpayers,” Harish Thakur, political analyst and head of political science department in Himachal Pradesh University, said.
Different states have their own set of rules on payment of income tax by ministers and legislators.
On September 24, 2019, the Uttar Pradesh cabinet had approved an amendment to the Uttar Pradesh Ministers (Salaries, Allowances and Miscellaneous Provisions) Act, 1981 to nullify a provision that required the state treasury to pay taxes on the salaries and perks of ministers.
Ministers, MLAs and former MLAs in Odisha also pay taxes on their own. The state governments of Punjab and Haryana continue to clear the taxes for their ministers and legislators. In Jharkhand too, the income tax of legislators is paid from the state exchequer.