Guwahati, August 11: Assam Chief Minister Himanta Biswa Sarma announced on Tuesday that the state government will reintroduce agricultural income tax for large agricultural income earners, while small farmers and small tea producers with an annual income of up to ₹10 lakh will be completely exempt from this tax.
Speaking to reporters in Guwahati, Sarma stated that the government has decided to end the agricultural income tax exemption that has been in place for large taxpayers over the past six years. The revenue generated from this tax will be utilized for the welfare and development of tea garden communities.
The Chief Minister clarified that this decision will not impose any additional burden on small tea producers and farmers. He emphasized, “Small tea producers with an annual agricultural income of up to ₹10 lakh will not have to pay agricultural income tax.”
He mentioned that this exemption will provide relief to small-scale tea producers. The Assam budget for 2026-27 proposed to raise the agricultural income tax exemption limit for small tea producers from ₹2.5 lakh to ₹10 lakh annually. Additionally, the reimplementation of agricultural income tax for large taxpayers will take effect from April 1, 2026.
Sarma explained that this distinction is necessary as agricultural income can vary significantly based on production, farm size, market prices, and expenses. According to government policy, the aim of the tax exemption is to ensure that small tea producers are not adversely affected, while large agricultural and tea production businesses contribute to the state’s revenue.
The Chief Minister stressed that the government’s goal is not to place an extra burden on ordinary farmers. He noted that the income generated from this tax will be used for the welfare of tea garden communities, social schemes, and development projects.
This decision comes at a time when the Assam government is working to strengthen the tea industry and expand welfare schemes for tea garden workers and associated communities. The state budget also proposed increasing the production subsidy for orthodox and specialty teas from ₹10 to ₹15 per kilogram, along with plans to promote premium tea varieties like Matcha.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.