Gov’t called to tax MPs’ terminal grant

TRANSPARENCY Solomon Islands (TSI) is urging the national government to tax the $20 million terminal grant payout for members of Parliament which they will receive when Parliament dissolves on December 17, 2018.

Ministry of Finance and Treasury has confirmed to the Public Accounts Committee hearing this week that $20million will be put aside for terminal grants of the 50 MPs. Each MP will receive $400,000.

In a media statement, TSI says that it is deeply concerned on such payout because it will forego government’s revenue worth of millions according to PAYE calculation.

TSI says this is not fair whilst Solomon Islanders can hardly cope from pay week to pay week struggling to make ends meet daily of the deductions made to their pay, the biggest is the government tax or PAYE.

“People hope that the government will use the tax payers’ money to improve social services, such as schools, clinics, provide water supply and sanitation, enough medicine and medical supplies in the clinics as well as build economic infrastructures to bring about development in the country.

“While citizens are struggling to put food on the table, Members of Parliament allowances, salary, and entitlement is totally tax-free.

“TSI renews the call for PEC to honour its announcement to the press in 2016. It is time we revisit this issue.”

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