Bhopal: In a historic move, Madhya Pradesh chief minister Dr Mohan Yadav has reversed the 52-year-old income tax liability related provision during cabinet meeting held at Mantralaya on 25th June. Under the provision, which came into effect in 1972, the state government was responsible to pay income tax dues of ministers, CMs and other elected representatives that had accrued by way of allowances.
However, the old provision was reversed by introducing a new system in place as a proactive measure by the state government. The proposal to introduce a new system, moved by CM Dr Yadav, was instantly approved by cabinet colleagues during the cabinet meeting on Tuesday here.
Briefing the media, the urban development minister Kailash Vijayvargiya informed that as per old provision (Act of 1972), the state government used to pay income tax bills accrued on allowances by individual ministers. Now with the new system in place, ministers will have to clear the dues (income tax on allowances) by themselves.
In addition, a host of other issues were brought up and proposals made with regard to prison reforms, ex-gratia compensation to martyrs' families, scholarship to students pursuing studies in Sainik Schools, and the expansion of soil testing facilities at block level, among others, were also cleared by the MP cabinet today.
According to available information, the Centre has paid approximately Rs 3.25 crore as tax liability for 5 years on behalf of ministers, CMs, and other ministerial colleagues, while a sum of Rs 79.07 crore in 2023-24 was paid by the state government. The ministers claimed from the government (as reimbursement) the money which they paid towards income tax due directly to the department.
Published 25 June 2024, 15:28 IST