Odisha Government Abolishes Professional Tax, Big Relief for Working People

Major Announcement for Employees
In a significant decision, the Odisha government has abolished professional tax, bringing major relief to working individuals across the state. From this month onwards, no professional tax will be collected from employees.

Official Notification Issued
The Finance Department has issued a gazette notification confirming the decision. All departments have been directed not to deduct professional tax from the salaries of government employees.

New Rule Effective from April 2026
As per the official order, the abolition of professional tax has come into effect from April 1, 2026. The move follows the withdrawal of the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000, under a new ordinance issued in 2026.

Applicable to Private Sector as Well
The new rule applies not only to government employees but also to private sector workers. From April 1, 2026, no professional tax will be collected from any salaried individual or professional in the state.

Budget Announcement by Chief Minister
Chief Minister Mohan Charan Majhi had earlier announced this decision during the budget session, stating that there was a growing demand from the public to abolish the tax.

Relief from Financial Burden
Employees were already paying income tax, and the additional professional tax was seen as a financial burden. Considering this, the government decided to remove the tax to provide relief.

Revenue Impact on State Exchequer
The decision is expected to result in an annual revenue loss of around Rs 320 crore for the state government.

Who Benefited Earlier Under Tax System
Professional tax was earlier collected from a wide range of individuals, including salaried employees, business owners, doctors, lawyers, chartered accountants, insurance and postal agents, brokers, architects, and management consultants.

Tax Structure Before Abolition
Typically, a minimum of Rs 2,500 per year was collected as professional tax, depending on salary levels. For salaried employees, it was deducted monthly, while business owners paid it directly. Even ministers, MPs, and MLAs were required to pay this tax.

End of an Additional Tax Burden
With this decision, the Odisha government has removed an additional layer of taxation, providing financial relief to lakhs of working professionals across the state.