Assam budget proposes Rs 10 lakh tax exemption for small tea growers

Guwahati, Jul 10 (PTI) The Assam government on Friday proposed increasing tax exemption for small tea growers fourfold to Rs 10 lakh and raising the subsidy on orthodox and specialty tea by 50 per cent. Presenting his maiden Budget, state Finance Minister Jayanta Malla Baruah also announced a subsidy for export-oriented and premium-quality Assam CTC tea for the first time. "To provide relief to small tea growers, I propose to enhance the agricultural income tax exemption threshold from Rs 2.5 lakh to Rs 10 lakh of annual agricultural income," he added. At the same time, the tax will be restored for larger assessees with effect from April 1, 2026, and the additional revenue generated shall be dedicated exclusively to the welfare of tea garden communities, Baruah said. He said orthodox tea production has increased from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26, recording a strong growth of over 80 per cent in four years. "Assam has taken a significant step towards value addition in the tea sector with the successful production of premium Matcha tea. The first lot was sold through the Guwahati Tea Auction Centre at nearly Rs 3,000 per kg," the minister said. To further incentivise value addition and boost Assam Tea exports, Matcha tea shall be included within the eligible category of orthodox and specialty tea, he added. "The production subsidy for orthodox and specialty tea will be enhanced from Rs 10 per kg to Rs 15 per kg," he added. "Further, a new subsidy of Rs 3 per kg will be introduced for export-oriented and premium-quality Assam CTC tea that is exported directly through recognised export channels, contributing to the foreign exchange earnings," Baruah said. The finance minister said that the government will strengthen support to tea growers through Assam Tea Industries Special Incentives Scheme (ATISIS). "Further, we will strengthen healthcare delivery in tea garden areas by supporting Tea Garden Hospitals by infrastructure upgrade, diagnostics, medicines, equipment and deployment of dedicated doctors and human resources. The respective tea gardens will continue to support these hospitals as earlier," he added. PTI TR TR MNB