MPs’ retirement benefits to be taxed
What you need to know:
Presenting the 2016/17 national budget in the august House Wednesday, Finance minister, Dr Philip Mpango, said government planned to review the Income Tax Act to ensure that everyone paid tax
Dar es Salaam. Members of Parliament will have to pay tax like everyone else on their retirement benefits under new measures the Finance and Planning minister has proposed.
Presenting the 2016/17 national budget in the august House Wednesday, Finance minister, Dr Philip Mpango, said government planned to review the Income Tax Act to ensure that everyone paid tax.
The move, Dr Mpango said, would create equality and fairness among all people, who are supposed to pay tax.
The minister said: “I propose that the Income tax Act be reviewed to remove tax exemption related to Members of Parliament gratuity allowances. This will create equality among people who are supposed to pay tax.”
Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job.
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