Assam government introduces new policies on tax, announces Rs 42.72 crore investment for small Industries

The Assam Cabinet, chaired by Chief Minister Himanta Biswa Sarma, approved a series of decisions aimed at strengthening governance, environmental conservation, and public welfare during its meeting on Wednesday. The key initiatives include amendments to the Assam Value Added Tax (VAT) Rules, a framework for urban water body conservation, and measures for regularizing municipal services, among other strategic policies.

One of the major decisions was the approval of the Draft Assam Value Added Tax (Amendment) Rules, designed to enhance the state’s capacity to monitor taxable goods entering Assam. The revised rules introduce stricter regulations on the movement of goods via road, rail, river, air, and postal services. Public Health and Engineering Minister Jayanta Malla Baruah highlighted that these amendments will reinforce regulatory oversight and streamline tax compliance.

The Cabinet also greenlit the Draft Assam Urban Water Bodies (Preservation and Conservation) Rules, 2025, mandating district-level schedules for the protection and conservation of public water bodies. This initiative aligns with the state’s broader commitment to environmental sustainability and natural resource management.

In a move to regularize municipal employment, the Assam Municipal Employees (Provincialisation) Bill, 2025, was approved. This legislation will formalize the services of 1,044 municipal employees across 71 boards, provided they were appointed before September 4, 2013. Additionally, the Cabinet sanctioned the Assam Secondary Education (Provincialised Schools) Services Rules, 2024, introducing a structured regulatory framework for secondary education employees in provincialized schools.

To further promote linguistic inclusivity, the government approved the deployment of Assamese Language Teachers (ALTs) in both Assamese and non-Assamese medium schools. This initiative seeks to enhance Assamese language education statewide, fostering cultural and linguistic integration.

The Cabinet also took steps to strengthen higher education governance by approving the regularization of Bodoland University’s statute to facilitate its smooth functioning. Moreover, a dedicated web portal will be launched to ensure compliance with the Right to Education (RTE) Act, guaranteeing 25% seat reservations for economically weaker section (EWS) students in unaided private schools.

In a move to streamline the public distribution system, the Cabinet approved amendments to the Assam Public Distribution of Articles Order, 2025. This revision extends the renewal period for Fair Price Shop licenses from three to five years, thereby enhancing operational efficiency and simplifying administrative procedures.

Furthering its commitment to economic growth, the government sanctioned an investment of ₹42.72 crore for cluster development initiatives in small industries. This investment aims to boost local entrepreneurship by improving infrastructure and providing essential support to small-scale enterprises.