Kolkata: West Bengal Finance Minister Swapan Dasgupta on Monday unveiled a series of tax simplification measures while presenting the full state budget for the financial year 2026-27, with the twin objective of easing compliance and boosting the state’s own tax revenue collection.
The presentation marked the maiden budget session under the first Bharatiya Janata Party (BJP)-ruled government in the state since Independence.
The announcements were in line with the commitment made by Dasgupta after assuming charge of the finance department earlier this month. He had then stated that the government would seek to increase its own tax revenues without imposing additional burdens on ordinary taxpayers.
One of the key proposals relates to professional tax. The government has proposed a significant increase in exemption thresholds across different categories of taxpayers. For salaried individuals, the monthly exemption limit has been raised from Rs 10,000 to Rs 20,000. For self-employed persons, the annual exemption threshold has been enhanced from Rs 60,000 to Rs 2.5 lakh.
Similarly, for traders and business establishments, the annual gross receipt or turnover threshold for professional tax liability has been increased from Rs 5 lakh to Rs 10 lakh.
The Finance Minister also announced a complete exemption from professional tax for personnel of the Border Security Force (BSF) currently posted in West Bengal.
Another major announcement concerned the state’s excise regulations. Dasgupta said that the government would amend the existing provisions under the West Bengal Excise (Procedure for Grant and Functioning of Licence and Payment of Fees of Industrial Spirit) Rules, 2025.
Under the present framework, homoeopathic medicine manufacturers using industrial spirit for the production of potentised medicines are required to obtain licences from the state excise directorate after paying the prescribed fee.
Describing the requirement as an avoidable compliance burden on an industry that has contributed significantly to employment and economic activity, the minister said the state government had decided to do away with the provision through suitable amendments to the rules.
At the same time, the government announced stricter norms for the establishment of liquor shops. No fresh licence will be issued if the proposed premises are located within one km of an educational institution, hospital or religious place. Within the jurisdiction of the Kolkata Municipal Corporation, the minimum distance requirement will be 500 metres.
The budget also projects a sharp increase in the state’s own tax revenue collection. According to the budget estimates for 2026-27, the state’s own tax revenue is expected to reach Rs 1,30,669.68 crore, compared to the revised estimate of Rs 1,11,737.13 crore for 2025-26.
Among the major contributors, State Goods and Services Tax (SGST) is projected to generate Rs 61,535 crore, while state excise revenue is estimated at Rs 24,922 crore, making them the two largest sources of the state’s own tax receipts during the financial year.
(IANS)
