A select group of chief ministers and cabinet ministers in certain states are enjoying a privilege unique to them – the payment of their income tax burden by the state exchequers for years.
These individuals, including serving chief ministers, council of ministers, Speakers, Deputy Speakers, Chairmen, Deputy Chairmen of Legislative Councils, and government advisers with cabinet rank, have had their income tax covered by the state exchequer in multiple states, such as Telangana, Madhya Pradesh, Chhattisgarh, Haryana, Uttar Pradesh, Uttarakhand, and Himachal Pradesh. Certain states have even amended provisions to exempt ministers from paying tax.
For instance, in 2019, the Uttar Pradesh Cabinet amended the law to exempt the Chief Minister and other ministers from paying their own income tax. Similarly, the Himachal Pradesh Cabinet announced in 2022 that all ministers and MLAs would pay their own income tax, which was previously covered by the state government.
Recently, the Telangana High Court issued notices to the general administration department’s chief secretary and principal secretary after a PIL challenged the practice of the public exchequer paying income tax of the Chief Minister, Cabinet ministers, and others.
The income tax burden of the Speaker, Deputy Speaker, Chairman, Deputy Chairman of the Legislative Council, and all government advisers with Cabinet rank is also reportedly covered by the public exchequer.
An NGO, 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. Particularly, the PIL aims at Section 3(4), which mandates the state government to bear the income tax burden of certain individuals holding public offices. The PIL was heard by a division bench, which directed the Chief Secretary and principal secretary (GAD) to file the counters.
In a similar vein, the Madhya Pradesh cabinet recently decided that state ministers will have to pay their income tax instead of the state government bearing such a burden. Chief Minister Mohan Yadav stated that the cabinet struck off the 1972 rule, under which the state government was paying income tax on the salaries and perks of ministers. Consequently, the cabinet decided that all ministers would pay the income tax on their salaries and allowances.
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