A select group of chief ministers and cabinet ministers in some states are enjoying a privilege that no other citizen of the country can boast of – the ‘lucky Indians whose income tax burden is being shouldered by the state exchequers for years.
These ’lucky Indians’ – comprising serving chief ministers, council of ministers, Speakers, Deputy Speakers, Chairmen, Deputy Chairmen of Legislative Councils, and government advisers with cabinet rank in select states of the country.
The financial burden of paying income tax for serving chief ministers and their council of ministers has been borne by the state exchequer in multiple states, including Telangana, Madhya Pradesh, Chhattisgarh, Haryana, Uttar Pradesh, Uttarakhand, and Himachal Pradesh for several years. While some states have already amended provisions to exempt ministers from paying tax.
In 2019, the Uttar Pradesh Cabinet amended the law that exempted the Chief Minister and other ministers from paying their own income tax.
The Himachal Pradesh Cabinet had in 2022 also said that all ministers and MLAs would pay their own income tax, which was till then being paid by the state government.
On Thursday, the Telangana High Court issued notices to the general administration department’s chief secretary and principal secretary, seeking its contentions in a PIL challenging the practice of the public exchequer paying income tax of the Chief Minister, Cabinet ministers and others.
According to media reports, the income tax of the Speaker, Deputy Speaker, Chairman and Deputy Chairman of the Legislative Council and all government advisers with Cabinet rank is also paid from the public exchequer.
A non-governmental organisation, the Forum for Good Governance filed a public interest litigation (PIL) challenging a longstanding provision in the Andhra Pradesh Payment of Salaries and Pension and Removal of Disqualification Act, 1953. Specifically, the PIL aims at Section 3(4), which mandates the state government to bear the income tax burden of certain individuals holding public offices.
A division bench, comprising Chief Justice Alok Aradhe and Justice Jukanti Anil Kumar, heard the PIL and directed the Chief Secretary and principal secretary (GAD) to file the counters, Deccan Chronicle reported.
Last month, the Madhya Pradesh cabinet decided that state ministers will have to pay their Income Tax, instead of the state government bearing such a burden.
Chief Minister Mohan Yadav in a statement said the cabinet has decided to strike off the 1972 rule, under which the state government was paying the income tax on the salaries and perks of ministers.
The cabinet decided that all ministers would pay the income tax on their salaries and allowances, Yadav said.
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Lucky Indians whose salary as well as income tax is paid by government
