Finance EM Seiborlang Warbah assures review to ensure genuine small earners are not unfairly burdened

Shillong, October 22, 2: A call for clarity on the impact of professional tax on micro and informal business owners dominated proceedings during Tuesday’s sitting of the Autumn Session of the Khasi Hills Autonomous District Council (KHADC).

Raising the issue, MDC Bah Ricky Shullai (Laban Constituency) questioned whether the existing tax system fairly distinguishes between small local entrepreneurs, street vendors, home-based earners, and first-generation youth startups, as opposed to established commercial entities or contractors.

He expressed concern that many low-income individuals operating on a survival basis might be unintentionally taxed on par with larger businesses, urging the Executive Committee to introduce categorisation or exemption mechanisms to protect the smallest income groups.

In his response, Executive Member in charge of Finance, Bah Seiborlang Warbah, informed the House that the Council had collected ₹11.98 crore in professional tax during the 2024–25 financial year, covering various segments such as government employees, teachers, banks, contractors, and registered enterprises.

Warbah assured the Council that the Finance Department is reviewing the current tax structure, adding that the intention is not to burden micro earners or struggling livelihoods, but to ensure fair and progressive compliance among established income groups.

“The Executive Committee remains open to restructuring the slab system or providing targeted exemptions after a careful assessment,” Warbah said.

Shullai’s intervention follows a similar concern raised earlier by MDC Kong Grace Mary Kharpuri, highlighting a growing consensus within the Council to safeguard small entrepreneurs and self-reliant youth from disproportionate taxation while maintaining fiscal accountability.