Professional Tax of private employees in Bengal to stay in state: FM Swapan Dasgupta

West Bengal Finance Minister Swapan Dasgupta introduced key amendments to the state Finance Bill aimed at increasing revenue collection without raising existing tax rates. Under the revised provisions, professional tax deducted from private sector employees working within West Bengal will now be deposited directly into the state treasury. Previously, if a company's corporate headquarters was located in another state, the professional tax deducted from local employees was often remitted to that host state instead.

Addressing the West Bengal Legislative Assembly, the Finance Minister clarified that the new rules will not lead to double taxation for employees. Companies operating within the state will now be required to declare the exact number of employees eligible for professional tax when submitting returns. Dasgupta noted that while public sector employment numbers are declining, private sector job growth is expanding, making this structural adjustment necessary to capture state revenues effectively.

In addition to professional tax reforms, the state government outlined plans to formalize the informal sector and tighten tax structures on mining operations, which had previously enjoyed exemptions. Through these administrative measures and rigid compliance checks, the Finance Ministry anticipates an 18 percent increase in state revenue growth trends, while maintaining expenditure discipline across departments.