Rs 15,000 monthly earners exempted from professional tax

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Guwahati: Assam finance minister Ajanta Neog, in the fifth consecutive annual budget presented on Monday, proposed exempting people earning up to Rs 15,000 per month from professional tax, benefiting over 1.43 lakh families.
Neog said in her budget speech this exemption of professional tax will boost their purchasing capacity.
For the bell metal industry, she announced reimbursement of SGST, with a detailed notification expected by May 2025.
Neog said no additional tax burden has been imposed on the people, following the precedent set by chief minister Himanta Biswa Sarma during his tenure as finance minister.

To support the tea industry, Neog announced extension of tax holiday on green tea leaves for two more years, effective Jan 1, 2025.
Highlighting the impact of tax reforms, she said, “We have reached the stage where salaries can be paid through our own resources. This is unprecedented and historical in the context of Assam.”
In 2023-24, Assam collected Rs 22,580 crore in taxes, making a 15% growth from the previous fiscal year. In the current fiscal, the total revenue collection as of Feb 2025, including GST and non-GST components, stands at Rs 21,578 crore, marking a 5% growth.
“Recognising the evolving taxation landscape, our govt is continuously investing in capacity building of tax officials and use of IT tools for efficient tax administration,” she said.
Neog also highlighted the state’s revenue growth from Rs 20,033 crore in 2020-21 to Rs 32,886 crore in Feb 2025, a robust 64.2% increase.
Neog also proposed automating vehicle fitness and driving licence tests to eliminate manual intervention.
“In 2024, with amendments in Assam Motor Vehicle Taxation Act, 1936, taxation is restructured with a view to make it simpler, rationalised and people friendly. Three-wheeler vehicles, including e-rickshaw/e-cart and certain categories of small commercial goods or passenger vehicles will now fall under one-time tax regime so as to reduce recurring compliance burden on such categories of vehicles,” she said.