The Assam government on Monday extended the tax holiday for green tea leaves production for two more years and announced financial assistance for tea garden labour. Finance Minister Ajanta Neog presented her last full budget for the fiscal before next year’s assembly election.

“I also announce extension of tax holiday on green tea leaves under the Assam Taxation (on Specified Lands) Act, 1990, for another two years with effect from January 1, 2025,” Neog said.

Assam is India’s leading tea producer and has incentivised farmers to tap the increasing green tea demand.

The budget has provisioned Rs 342 crore for tea garden communities, that entails Rs 5,000 one-time grant to 6.8 lakh existing permanent and casual tea garden workers.

Neog presented a Rs 2.63 lakh crore budget for fiscal 2025-26, with a deficit of Rs 620.27 crore. It projects 2024-25 nominal GSDP growth of 13%.

The budget has proposed to exempt professional tax for individuals earning up to Rs 15,000 per month under the Assam Profession, Trades, Callings and Employments Taxation Act, 1947.

“This will benefit more than 1.43 lakh taxpayers/families and boost their purchasing capacity,” she said.

The government has allocated Rs 391 crore for women’s education and Rs 370 crore for food subsidy.