Why do MPs pay ~ Rs.7,500+ in APIT (income tax) while others pay Rs.55,000+ for the same salary?

Why do MPs pay ~ Rs.7,500+ in APIT (income tax) while others pay Rs.55,000+ for the same salary?

⭕️ MP Ramanathan Archchuna has publicly shared his Parliament salary slip for March 2026, stating that the public should be aware of the earnings received by Members of Parliament.

⭕️ According to the document shared by the MP, the gross monthly salary and allowances amounted to Rs. 415,169.93. After deductions totaling Rs. 19,308.71, the net salary credited to his account was Rs. 395,861.22.

⭕️ One of the clear differences comes from APIT. For a gross salary of Rs. 415,169.93, anyone working in the private or government sector would typically pay Rs. 55,000+ in taxes, but MPs pay only around Rs. 7,500+. The reason is that the government at the time has effectivitly creating a different tax structure for MPs.

So, how is taxable income calculated when it comes to MPs and higher-ranking government officials?

⭕️ The new 36% maximum APIT income tax system came into effect in January 2023, and MPs initially paid taxes on their income just like any other taxpayer.

⭕️ However, in the very next month (February 2023), the IRD introduced an amendment related to non-cash benefits. This was designed in a way that significantly favored MPs: under the amendment, only 25% of their vehicle, fuel, and communication allowances are considered taxable.

⭕️ As a result, MPs’ tax liability dropped from around Rs. 76,000 to about Rs. 17,000, while virtually nothing changed for regular taxpayers.

⭕️ With the 2025 revision of the tax code, particularly the elimination of the 12% tax bracket, the tax liability for MPs was further reduced to around Rs. 5,000 to Rs. 7,500, while others earning a similar income continue to pay over Rs. 55,000.

we have talked about this in the past. old post:
https://x.com/numberslka/status/1653696550718283776