Kolkata
West Bengal Finance Minister Swapan Dasgupta on Monday presented the state’s full budget for the financial year 2026-27, announcing a series of tax simplification measures designed to reduce compliance burdens and improve the state’s own revenue generation.
The budget marks the first full financial roadmap of the Bharatiya Janata Party-led government, the first BJP administration to govern the state since Independence.
Presenting the budget in the state assembly, Dasgupta reiterated the government’s commitment to enhancing tax collections without placing additional financial pressure on ordinary citizens. He had earlier indicated that the administration would focus on widening the tax base and improving compliance rather than increasing tax rates.
One of the most significant announcements relates to professional tax exemptions. The government has proposed a substantial increase in exemption limits across various taxpayer categories. For salaried employees, the monthly income threshold exempt from professional tax has been doubled from Rs 10,000 to Rs 20,000. The move is expected to benefit a large number of lower and middle-income earners across the state.
For self-employed individuals, the annual exemption limit has been raised dramatically from Rs 60,000 to Rs 2.5 lakh. The government believes the measure will provide relief to small professionals, freelancers, and independent service providers while encouraging voluntary compliance.
The budget also offers concessions to traders and business establishments. The annual turnover threshold for professional tax liability has been increased from Rs 5 lakh to Rs 10 lakh. This change is expected to reduce compliance obligations for small businesses and allow entrepreneurs to focus more on expanding their operations.
In a special measure, the Finance Minister announced complete exemption from professional tax for personnel of the Border Security Force currently posted in West Bengal. The move was presented as a gesture of recognition for the services rendered by security personnel deployed along the state’s international borders.
Another major reform concerns the state’s excise regulations. Dasgupta announced that the government would amend provisions under the West Bengal Excise (Procedure for Grant and Functioning of Licence and Payment of Fees of Industrial Spirit) Rules, 2025.
Under existing regulations, manufacturers of homoeopathic medicines using industrial spirit for the production of potentised medicines are required to obtain licences from the state excise directorate and pay prescribed fees. The Finance Minister described this requirement as an unnecessary compliance burden on an industry that contributes significantly to employment generation and economic activity.
To support the sector and simplify regulatory procedures, the government has decided to remove this licensing requirement through suitable amendments to the rules. Officials believe the reform will reduce administrative hurdles, lower operational costs for manufacturers, and encourage further growth in the homoeopathic medicine industry.
