Madhya Pradesh cabinet ends 50-year-old rule, ministers to pay own income tax
Chief Minister Mohan Yadav introduced the proposal during a Cabinet meeting, advocating that ministers should now bear their own tax liabilities.
The Madhya Pradesh Cabinet has decided to scrap a long-standing rule dating back to 1972, which exempted state ministers from paying income tax on their salaries and allowances.
Chief Minister Mohan Yadav introduced the proposal during a Cabinet meeting, advocating that ministers should now bear their own tax liabilities.
Urban Administration Minister Kailash Vijayvargiya announced the decision, stating, “The Cabinet has agreed to cease the practice of the state government covering income taxes for ministers, as proposed by the Chief Minister.”
Under the previous law, section 9K of the Madhya Pradesh Ministers (Salary and Allowances) Act exempted ministers, ministers of state, deputy ministers, and parliamentary secretaries from income tax on their allowances and perks.
Finance department officials clarified that the original intent of this provision was to alleviate tax burdens for ministers from less affluent backgrounds. However, with its abolition, the state anticipates direct financial savings, potentially allowing for enhanced allocation of resources towards development projects and public services.
Madhya Pradesh joins states like Uttar Pradesh and Himachal Pradesh in revising such regulations to require elected officials to pay their own income taxes, aligning with fiscal responsibility measures across state administrations.
