No income tax for small tea growers: Assam CM
Guwahati, Aug 11
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
Reader Comments
Interesting policy differentiation. It's good to see the government distinguishing between small growers and large commercial entities. The welfare angle for tea garden communities is a welcome touch.
As someone from Assam, I can say this is much needed. Our small tea growers have been facing so many issues - from price fluctuations to climate change. At least now they won't have to worry about income tax. Hope the revenue actually reaches the community. 🙏
The subsidy increase for orthodox tea from Rs 10 to Rs 15 per kg is also a smart move. Matcha production is the future. Good to see the state thinking beyond just CTC tea.
I just hope the implementation is smooth. In theory this sounds great - small growers protected, big players contributing their fair share. But we've seen how tax exemptions and welfare schemes sometimes get tangled in bureaucracy. Let's watch how it actually plays out.
It's about time! Large tea estates have been getting away with paying almost nothing in agricultural income tax for years. Restoring it for bigger players while protecting small growers is the right balance. Chai garden workers need better facilities and this could fund that.
A pragmatic approach by the Assam CM. The threshold
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