Allowances to be taxed too

Civil servants may see their allowances taxed in the next fiscal (2014-2015) year. Finance Minister AMA Muhith hinted that government employees may have their allowances taxed while presenting the national annual budget on Thursday. Public servants are exempt from paying taxes on their allowances, except basic salaries. On the other hand, the allowances including basic salary of the employees of semi-government and autonomous bodies are liable to tax. ‘Under such circumstances, it is reasonable to bring parity of tax liability of all the employees of government, semi-government and autonomous bodies,’ the finance minister said in his 2014-15 budget his speech in parliament. The National Pay Commission was working on new pay structure and a report was expected by December, 2014, he said. ‘The issue of existing discrepancies of tax liability on income is expected to be addressed while implementing the report,’ he added, according to a news agency.