Assam Budget raises tea growers' tax exemption to Rs 10 lakh
Assam's Budget proposes a sharp tax exemption hike for small tea growers and higher incentives for premium teas. It also restores tax for larger assessees from 2026 and channels the proceeds towards tea garden welfare.
- Jul 10, 2026,
- Updated Jul 10, 2026, 10:24 PM IST
Small tea growers in Assam could receive a major tax break, while producers of orthodox, speciality and export-oriented teas are set to benefit from higher incentives under proposals unveiled in the state Budget on July 10.
Presenting his maiden Budget, Finance Minister Jayanta Malla Baruah proposed raising the agricultural income tax exemption limit for small tea growers from Rs 2.5 lakh to Rs 10 lakh annually.
"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," Baruah said.
The minister also announced that agricultural income tax would be restored for larger assessees from April 1, 2026. He said the additional revenue generated would be used exclusively for the welfare of tea garden communities.
The Budget proposes increasing the production subsidy for orthodox and speciality tea by 50 per cent, from Rs 10 per kg to Rs 15 per kg. Matcha tea, which has recently emerged as a premium product from Assam, will also be brought under the eligible category for these incentives.
Highlighting the state's progress in value-added tea production, Baruah said orthodox tea output had risen from 4.39 crore kg in 2021-22 to nearly 8 crore kg in 2025-26, marking growth of more than 80 per cent over four years.
He added that Assam had taken "a significant step towards value addition" with the successful production of premium Matcha tea, noting that the first batch was sold through the Guwahati Tea Auction Centre for nearly Rs 3,000 per kg.
For the first time, the government also proposed a subsidy for export-oriented premium Assam CTC tea. Under the proposal, tea exported directly through recognised export channels will receive an incentive of Rs 3 per kg to encourage exports and contribute to foreign exchange earnings.
Baruah said the government would further strengthen support for the tea sector through the Assam Tea Industries Special Incentives Scheme (ATISIS).
The Budget also focuses on healthcare in tea garden areas. The minister said Tea Garden Hospitals would receive support for infrastructure upgrades, diagnostics, medicines, medical equipment and the deployment of dedicated doctors and healthcare personnel, while tea estates would continue supporting the hospitals as before.