Transparency Solomon Islands says a legal challenge is being mounted over the controversial move making MPs' salaries tax free.
A TSI official, Louise Hiele, says a petition is also being prepared which will call on the Parliamentary Entitlements Commission, which granted the exemptions, to reconsider.
Mrs Hiele says comments by the Prime Minister Manasseh Sogavare in parliament, in support of the changes, have sparked widespread criticism and anger.
"He actually made the comment that anybody who questions these changes are living in an imaginary world. And that anybody who wants to call for a review of the entitlements should actually go and visit MPs houses to see how many people they are feeding everyday."
Louise Hiele says the prime minister's statement in parliament contradicts an earlier promise in which he said he would address the public concerns.