Cabinet decisions: Himachal govt not to file Income Tax for MLAs

Shimla: In a significant move, the Himachal Pradesh cabinet on Wednesday decided to put an end to the practice of the state government filing the Income Tax returns, on behalf of sitting MLAs and cabinet ministers.

The Cabinet which met under the chairmanship of Chief Minister Jai Ram Thakur, has approved promulgation of ordinance — HP Payment of Income Tax on Salaries and Allowances of Certain Categories Ordinance — 2022 to reverse a decision, apparently taken some years back.

Now, the Income Tax shall be paid by the individual members i.e. Chief Minister, Ministers, Speaker, Deputy Speaker, and MLAs.

A PIL was filed in the High Court questioning the legality of the HP Legislative Assembly (Allowances and Pensions of Members) Act, 1971, whereby the Members of the Legislative Assembly and the Ministers were exempted from paying the income tax, on the income earned by them, along with various allowances and perquisites.

The Cabinet also gave its approval to the promised Development plan of Shimla, which allows construction in the green belt and areas banned for all future constructions.

"The Cabinet gave its approval to the Development Plan for Shimla Planning Area after over 43 years, as till now interim development plan was in force," said a government spokesman.

However, the environmentalists have voiced their strong concerns over the ' vote bank' politics which has already created construction havoc in Shimla, resulting in depletion of the forest over and a rise of temperature in the hill station because of high rise buildings and 'concrete jungle'.

A petition has already been filed in the High Court against this move but the government, because of upcoming Shimla Municipal Corporation polls, has decided to go ahead with permitting construction in the ecologically fragile green belt of Shimla.

Shimla, as studies reveal, has already exceeded its carrying capacity and thus all new constructions were banned in the green belt patches, seventeen notified by the government.

The cabinet decided to provide a state government guarantee enabling the Himachal Pradesh Road Transport Corporation to pick up Rs. 110 crore loan from banks at competitive rates for paying pending liabilities of death cum retirement gratuity and leave encashment of its retirees.

It gave its approval to enhance the honorarium of elected representatives of Panchayati Raj Institutions.