Assam Finance Minister Jayanta Malla Baruah on Friday proposed raising the annual income threshold for small tea growers to avail agricultural tax exemption from Rs 2.5 lakh to Rs 10 lakh, while presenting the state budget for 2026-27.
The proposal, aimed at easing the tax burden on small tea cultivators, was among the key announcements in what is the first full budget of Chief Minister Himanta Biswa Sarma's second consecutive term, presented during the ongoing Assembly session that began on July 6 and runs till July 31.
Baruah also announced that the state government proposes to cut Value Added Tax on piped natural gas to 5% from the current 14.5%, a move he said was intended to promote the use of cleaner fuel across the state, PTI reported.
The tea sector, a mainstay of Assam's economy and identity, has featured prominently in the state's recent fiscal policy.
The government had earlier this year granted a three-year exemption on agricultural income tax to mark 200 years of the Assam tea industry, and small growers — who account for a significant share of the state's tea production but often operate with thin margins — have periodically sought relief from taxation to remain competitive.
The budget comes as the Sarma government, having won a third successive term, looks to lay out its full economic roadmap after presenting only a vote-on-account ahead of the Assembly elections earlier this year.
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The government has positioned Assam as an industrial gateway to India's Northeast, with the budget expected to also address investment commitments across semiconductors, electronics, food processing, renewable energy and logistics.
Beyond the tea and gas sector announcements, the budget session is also set to see the introduction of several bills that have already cleared Cabinet approval, including legislation on tourism, shops and establishments, MSMEs, public trusts, satellite town development around Guwahati, and land and revenue regulations.
Further details of the budget's welfare measures, infrastructure allocations and revenue projections are expected to be outlined through the remainder of Baruah's speech in the Assembly.
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