Guwahati, Aug 11 (IANS) The Assam government will restore agricultural income tax for larger assessees while keeping small farmers and tea growers earning up to Rs 10 lakh a year outside the tax ambit, Chief Minister Himanta Biswa Sarma said on Tuesday.
Speaking to reporters here, Sarma said the government had decided to withdraw the exemption on agricultural income tax that had remained in place for the past six years. The revenue generated through the restored tax would be utilised for the welfare and development of tea garden communities.
The Chief Minister clarified that the move would not burden small tea growers and farmers, for whom the exemption threshold has been raised substantially. “Small tea growers earning up to Rs 10 lakh as annual agricultural income will not have to pay agricultural income tax,” Sarma said, explaining that the exemption would provide relief to those operating on a relatively small scale.
The Assam Budget for 2026‑27 had proposed raising the agricultural income tax exemption threshold for small tea growers from Rs 2.5 lakh to Rs 10 lakh annually. At the same time, the government announced restoration of agricultural income tax for larger assessees from April 1, 2026.
Sarma said the distinction was important as agricultural income can vary widely depending on the scale of operations, production, market prices and expenditure incurred by growers. According to the government’s policy, the tax exemption is aimed at ensuring that small tea growers are not adversely affected. At the same time, larger agricultural and tea‑growing entities contribute to the state’s revenue.
The Chief Minister stressed that the government’s intention was not to impose an additional burden on ordinary farmers. Instead, the restored revenue would be channelled towards improving the welfare of tea garden communities, including social and developmental initiatives.
The move comes as Assam seeks to strengthen the tea sector while simultaneously expanding welfare measures for tea garden workers and communities. The state Budget had also proposed increasing production subsidy for orthodox and speciality tea from Rs 10 to Rs 15 per kg and extending support to premium tea varieties, including Matcha.
–IANS
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