Assam Budget: Tax Holiday Extended For Green Tea Producers; Rs 5,000 Grant For Tea Garden Workers

The Assam government on Monday extended the tax holiday for green tea leaves production for two more years and announced financial assistance for tea garden labour. Finance Minister Ajanta Neog presented her last full budget for the fiscal before next year's assembly election.

"I also announce extension of tax holiday on green tea leaves under the Assam Taxation (on Specified Lands) Act, 1990, for another two years with effect from January 1, 2025," Neog said.

Assam is India's leading tea producer and has incentivised farmers to tap the increasing green tea demand.

The budget has provisioned Rs 342 crore for tea garden communities, that entails Rs 5,000 one-time grant to 6.8 lakh existing permanent and casual tea garden workers.

Neog presented a Rs 2.63 lakh crore budget for fiscal 2025-26, with a deficit of Rs 620.27 crore. It projects 2024-25 nominal GSDP growth of 13%.

The budget has proposed to exempt professional tax for individuals earning up to Rs 15,000 per month under the Assam Profession, Trades, Callings and Employments Taxation Act, 1947.

"This will benefit more than 1.43 lakh taxpayers/families and boost their purchasing capacity," she said.

The government has allocated Rs 391 crore for women's education and Rs 370 crore for food subsidy.

The total expenditure from the state's consolidated fund in 2025-26 is projected at Rs 1.56 lakh crore. Taking into account the expenditure of Rs 1 lakh crore under the public account and Rs 2,000 crore under the contingency fund, the aggregate expenditure for the year is estimated at Rs 2.61 lakh crore, the minister said.

The Assam budget estimates aggregate receipts of nearly Rs 2.63 lakh crore.

"Thus, projected transactions during the year will result in an estimated surplus of Rs 1,954.68 crore. This, together with the opening deficit of Rs 2,574.95 crore, will lead to a budget deficit of Rs 620.27 crore at the end of the financial year 2025-26," Neog said.

Assam will hold elections during March-April next year. The incumbent Bharatiya Janata Party will eye a third term in office under the leadership of Chief Minister Himanta Biswa Sarma.

(With PTI inputs).