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

Guwahati, Jul 10 (PTI) The Assam government on Friday proposed increasing the tax exemption limit 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 through 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. Baruah said nearly 30,000 tea garden families across the state had received land pattas, ending years of uncertainty over land ownership. "Survey has already begun in another 250 tea gardens and within this financial year, our government will ensure land rights for 1.14 lakh more families," he added. Baruah also informed the House that the government of India has taken an in-principle decision to provide benefits of PMAY houses to eligible tea garden workers. "Over the next five years, we will ensure that each of Assam's 3.5 lakh tea garden families secures legal title to their land," he added. On tea tourism, Baruah said Assam has three 18-hole championship golf courses and 10 nine-hole courses, many located within beautiful tea estates. "Our government proposes to launch the Assam Tea and Golf Trail, a unique tourism initiative that brings together the state's globally renowned tea heritage and distinctive golf courses into a world-class experiential tourism circuit," he added. Developed in partnership with tea estates, the tourism and hospitality sectors and local communities, this initiative will strengthen Assam's position as a premier destination for high-value domestic and international travellers, the minister said. PTI TR MNB TR MNB