Assam tea sector gets tax holiday of three years

Guwahati: The Assam government comes to the rescue of the ailing tea industry. It has announced interest subvention of three per cent on the working capital loan taken by the tea estates. A subsidy of ₹7 per kg will be provided. Apart from the purchase cost of plant and machinery for orthodox tea, 25 per cent subvention will be provided on the capital expenditure. The tea industry is given a three-year tax holiday from payment of agriculture income tax. To meet these, state governments will incur an outflow of ₹200 crore annually. Assam finance minister Himanta Biswa Sarma said the tea industry has been facing a crisis for the last several years. “The tea industry, even during the Covid-19 pandemic lockdown has paid the wages of tea workers. To assist the ailing tea sector, the Assam government will provide three per cent interest subvention on the working capital loan taken by the tea estates. This subvention. however. per annum will be capped at ₹20 lakh.”

from Economic Times https://ift.tt/3kOzgAh