Odisha Abolishes Professional Tax
The state of Odisha has officially repealed its Professional Tax Act, marking a significant shift in its tax landscape. This move was formalized through the Odisha State Tax on Professions, Trades, Callings and Employments (Repeal) Ordinance, 2026, which was published in the Odisha Gazette on April 21, 2026. The ordinance, promulgated by the Governor of Odisha, retroactively cancels the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000, with effect from April 1, 2026.
Why the Immediate Repeal?
The decision to repeal the Act was made necessary by the circumstances of the State Legislature not being in session. The Governor of Odisha deemed it essential to take immediate action to nullify the existing professional tax law. This ordinance was enacted under the powers vested in the Governor by Article 213 of the Constitution of India, ensuring swift legislative action when the assembly is not convened.
Key Provisions and Safeguards
While the professional tax is now abolished prospectively, the ordinance includes crucial provisions to ensure continuity and fairness regarding past actions. A significant “savings clause” has been incorporated to protect all activities undertaken under the repealed Act. This means that any assessments completed, taxes paid, notices issued, or liabilities incurred before the repeal remain valid and enforceable. Furthermore, the ordinance ensures that any accrued rights, obligations, or ongoing legal proceedings related to the previous Act can be continued or initiated as if the Act had not been repealed.
The ordinance specifically states that the repeal will not affect:
- Any previous operations or actions duly completed, including orders passed, returns submitted, notices issued, assessments made, taxes paid, and any outstanding tax arrears to be collected.
- Any rights, obligations, or liabilities that were acquired, accrued, or incurred under the repealed Act.
- Any ongoing investigations, legal proceedings, or remedies concerning such rights, obligations, or liabilities. These can be instituted, continued, or enforced without hindrance.
The ordinance, titled “The Odisha State Tax on Professions, Trades, Callings and Employments (Repeal) Ordinance, 2026,” officially came into force on April 1, 2026.
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Readers should treat this as a tax and compliance update, not as personal advice.
This article is for general information based on available source information. It should not be considered legal, tax, investment, or financial advice.