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Cabinet approves plan to tax MPs

Posted by methun

The cabinet has cleared proposals to tax salaries of the speaker and members of parliament, having earlier endorsed similar plans to tax the ministers.

The MPs will have to pay income tax once these proposals are passed in parliament.

The approval came from a cabinet meeting on Monday chaired by prime minister Sheikh Hasina, her press secretary Abul Kalam Azad told reporters.

On Nov 17, the cabinet approved proposals to levy tax on the salaries of ministers, state and deputy ministers.

Hasina had announced in the last budget session of parliament that salaries of ministers, state ministers, deputy ministers, and MP will no more remain tax-free.

The latest nod was another step towards the implementation of that announcement.

Officials said the cleared proposals will be sent to parliament for their passage into law.

Azad said the proposals were about amendments of The Speaker and Deputy Speaker (Remuneration and Privileges) Act and The Member of Parliament (Remuneration and Privileges) Act.

According to existing laws, prime minister and MPs' salaries cannot be taxed.

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