FGG asks Governor to scrap tax perk for Ministers, Advisors

The forum requested the Governor to initiate steps to delete the relevant provision of the Act, prevent payment of taxes beyond what is legally permissible

Metro India News | Hyderabad

Forum for Good Governance (FGG) president M. Padmanabha Reddy has urged Telangana Governor to intervene and stop the practice of paying Income Tax of the Chief Minister, Deputy Chief Minister, Ministers, Advisors and Corporation Chairpersons holding Cabinet rank from public funds. Many states have dispensed with the unconstitutional practice of payment of Income Tax by Government, he noted.

In a representation submitted to the Governor, the FGG president contended that Section 3(4) of the Payment of Salaries Act, 1953, which allows the State Government to bear the Income Tax liability of Ministers, violates the constitutional principle of equality before law under Article 14.

The forum, a not for profit civil society organization working for governance reforms in the state of Telangana, alleged that the taxpayers' money is being used to pay the personal tax liabilities of public functionaries and sought disclosure of the names of beneficiaries and the amounts paid during 2024-25 and 2025-26. It also expressed concern that the benefit is being extended to several Advisors and Corporation Chairpersons enjoying Cabinet rank. In fact, most of these advisors and Chairpersons of Corporation are worn-out politicians and their contribution to governance is not visible, it added.

The forum requested the Governor to initiate steps to delete the relevant provision of the Act, prevent payment of taxes beyond what is legally permissible, and direct the Government to place all related expenditure details in the public domain. People have a right to know who are the persons whose Income Tax is paid from public money and the amount paid. It is therefore requested to direct the Chief Secretary to make public the names of persons and amount of Income Tax paid during the financial years 2024-25 and 2025-26.

FGG maintained that public funds should be used for welfare and development rather than for meeting the personal tax obligations of elected representatives and political appointees.