As far as i know the MPs are exempted from taxation on gratuity - this is based on Income Tax Act, 2004 (ITA 04).
According to old ITA 1973, all resident employees were exempted to half of gratuity payable - this included MPs also as they are expected to be resident!
It is surprising to note that no consideration was given to FAIRNESS to all the taxpayers. This is unacceptable, wamepitisha sheria inayowalinda.
Kwenye vikao vya NBAA (bodi ya wahasibu TZ) tuliizungumzia hilo suala kwamba wabunge watizamwe kama walipa kodi wengine na wasiopate undue advantage!
Sheria inasamehe kodi kwenye gratuity anayolipwa mbunge!