The Mamata Banerjee government has extended the waiver on agricultural income tax for the tea industry during the 2025-26 fiscal, much to the elation of the industry.
State finance minister Chandrima Bhattacharya, while placing the budget on Wednesday, said: "The government took up the scheme of waiver (zero rate) of agricultural income tax to provide relief to the tea industry. You will be happy to note that our government has decided to extend the benefit for another year, that is, till March 31, 2026.”
It comes as a relief for the tea industry besieged with lower price realisations and rising production costs.
“We welcome it. It will help the industry,” said Prabir Bhattacharjee, the Tea Association of India secretary general.
In Bengal, agricultural income tax rate is 30 per cent on profits earned from agriculture. In the tea industry, 60 per cent of profit earned by a tea estate is taxed for agricultural income. The rest is considered for income tax.
For small tea growers, their entire profit from tea-leaf sale is deemed as agricultural income.