Assam Extends Tax Holiday For Green Tea Leaves

Guwahati: The Assam government has extended the tax holiday on green tea leaves production for two more years and introduced financial assistance for tea garden workers. The announcements were made by Finance Minister Ajanta Neog while presenting the state budget for 2025-26, her last full budget before next year’s assembly elections.

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

Being the country’s leading tea producer, Assam has been offering incentives to farmers to meet the growing demand for green tea. The budget has allocated Rs 342 crore for tea garden communities, including a one-time grant of Rs 5,000 for 6.8 lakh permanent and casual workers.

Neog unveiled a Rs 2.63 lakh crore budget with an estimated deficit of Rs 620.27 crore. The state projects a nominal GDP growth of 13 per cent for 2024-25.

Among other significant proposals:

Professional tax exemption: Individuals earning up to Rs 15,000 per month will be exempted from professional tax, benefiting over 1.43 lakh taxpayers and enhancing their purchasing 
power.

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Women's education: Rs 391 crore has been allocated for women's education initiatives. 
Food subsidy: Rs 370 crore has been set aside to support food subsidies.

The total expenditure from the state’s consolidated fund for 2025-26 is projected at Rs 1.56 lakh crore. Adding Rs 1 lakh crore under the public account and Rs 2,000 crore under the contingency fund, the total expenditure is estimated at Rs 2.61 lakh crore.

The budget also forecasts aggregate receipts of nearly Rs 2.63 lakh crore, resulting in a projected surplus of Rs 1,954.68 crore. However, after accounting for the opening deficit of Rs 2,574.95 crore, the final budget deficit stands at Rs 620.27 crore.