Editorial
Discriminatory tax exemptions to go
A step in the right direction
Parliament on Wednesday took a very important, long-awaited step. It passed two laws scrapping discriminatory provisions contained in laws exempting the Speaker, Deputy Speaker and MPs from paying taxes on their remunerations. On the following day, two bills were also placed in the House to amend the Prime Minister's (Remuneration and Privileges) Act, 1975 and Ministers, Ministers of State and Deputy Minister (Remuneration and Privileges) Act, 1973.
That a 38-year-old regressive dispensation has been done away is laudable on the part of the Awami League. What is noteworthy is that this takes retrospective effect from July 1, 2011.
The MPs of both ruling and opposition parties have traditionally seen eye to eye with one another when it came to receiving higher financial benefits and perks which had even included sweeping tax exemptions.
Against this backdrop, the process undertaken to exempt speakers, prime minister, ministers, state ministers, deputy ministers and MPs from paying taxes on their salaries will go down very well with the people.
In established democracies, elected representatives enjoy such financial privileges as tend to discriminate between lawmakers and other citizens. Payment of taxes is just as much obligatory for citizens as it is for their elected representatives. Only more so, because as lawmakers they are only expected to be law abiders. They are to lead by example so that even tax evaders shun their habitual delinquency.
The ruling Awami League in its amended manifesto in July, 2009 had made a pledge not to continue with any law that was 'discriminatory' between MPs and citizens. By deciding to dispense with such provisions in four preexisting laws the AL has delivered on an important pledge in its manifesto.
One more imperative relates to the provision that allows MPs to import duty-free cars that deny the national exchequer a huge sum of money. As a logical extension of the non-discriminatory policy now being adopted by the government this too should be revisited.
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