Punjab to give tax-free perks to its ministers

Chandigarh, Aug 5 (IANS) Punjab state ministers, as well as the Leader of the Opposition, will no longer have to pay income tax on the perks allowed to them, once the proposed Bill to this effect is passed by the Vidhan Sabha.

The decision was taken on Monday at a meeting of the Council of Ministers, headed by Chief Minister Amarinder Singh, which decided to resolve the anomaly created inadvertently by a March 19, 2018, decision of the cabinet.

Though the Chief Minister had earlier announced the decision to tax the salary and allowances of ministers, the entire Section 2-C of the East Punjab Minister's Salaries Act of 1947 was inadvertently removed while making the necessary amendment.

As a result, all the perks also got included in the tax ambit of the ministers, which in some cases resulted in the tax liability turning out to be higher than the salary itself.

Since 1947, the government in Punjab had been paying taxes on salaries, allowances and perks of the ministers, till the Amarinder government decided to amend the law last year.

According to an official spokesperson, to end the anomaly, the Council of Ministers has now decided to introduce and insert the section 2-C.

The proposed section would state: "The free furnished house and other perquisites admissible to a minister under this act shall be exclusive of income tax, which shall be payable by the government."

The draft Bill for amending the East Punjab Ministers' Salaries Act, 1947, will be tabled in the House, according to an official spokesperson.