Assam Cabinet approves major reforms: tax relief, farmer incentives, and new departments

Syllad | The Rising MeghalayaMarch 27, 2025

The Assam Cabinet has rolled out a series of significant reforms, including tax relief for small traders, financial incentives for farmers, and the establishment of new government departments to enhance administrative efficiency.

Tax relief for small traders

The Cabinet has approved the discontinuation of tax collection from small traders and vegetable vendors operating in markets under Gram Panchayats. However, permanent shop owners in these markets will still be required to pay taxes.

New government departments

In a bid to streamline governance, the Cabinet approved the formation of two new departments—PWD (Home) and PWD (Health and Education). Additionally, the Climate Change Department will now be brought under the Environment and Forest Department for better coordination on ecological policies.

Healthcare expansion

The Cabinet has sanctioned the establishment of Block Primary Health Centres (PHCs) in all 126 Legislative Assembly constituencies of Assam. However, larger constituencies like Haflong will have two Block PHCs to cater to the population’s needs.

Furthermore, a budget of Rs 572 crore has been approved for the construction of Darrang Medical College, which will also house a BSc Nursing College and a GNM Nursing School, strengthening the state’s medical education infrastructure.

Boost for farmers: Higher MSP for paddy and mustard

In a move to double farmers’ income, the Assam government has announced an additional Rs 250 per quintal on paddy, raising the total price to Rs 2,550 per quintal, inclusive of the Rs 2,300 Minimum Support Price (MSP).

Similarly, mustard farmers will receive a top-up of Rs 500 per quintal, bringing their earnings to Rs 6,450 per quintal in addition to the Rs 5,950 MSP. These new rates will be effective from April 1, 2024.

Extended benefits for fair-price shops & tax exemptions

The Cabinet extended the validity of licenses for Fair Price Shops (FPS) across the state until June 30, 2026. Additionally, the government approved a professional tax exemption for individuals earning up to Rs 15,000 per month for the financial year 2025-26, benefiting around 1.4 lakh people.

The tea industry also received a boost as the Cabinet extended the cess exemption on green tea leaves for two more years, starting from January 1, 2025.

Child Care Leave for single male employees

The Cabinet approved an amendment to the Child Care Leave (CCL) Rules, extending benefits to single male government employees who are widowed or divorced and have custody of up to two children. Additionally, the state will introduce CCL for female employees and single male employees with disabled children for a maximum of two years.

New reserved forest in BTC

The Cabinet also approved the conversion of 774 hectares of Nayekgaon PRF (Proposed Reserve Forest) under BTC into a 180-hectare Reserved Forest, strengthening environmental conservation efforts.