Odisha discontinues professional tax from April 2026 following repeal ordinance

The Odisha government issued instructions to discontinue the deduction of professional tax from employees’ salaries with effect from April 2026. This followed the repeal of the existing law governing the levy of professional tax in the state. As per the State Tax on Professions, Trades, Callings and Employments ( Odisha ) Ordinance, 2026, the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 was repealed with effect from April 1, 2026. With this, the provision for levying professional tax under the earlier legal framework was brought to an end across the state. Directions Issued In line with the repeal, all Drawing and Disbursing Officers (DDOs) under administrative control were directed to stop the deduction of professional tax from employees’ salaries from April 2026 onwards. The instruction was communicated to ensure uniform implementation across government departments and offices. Official Communication A letter issued by the Additional Secretary of Odisha to all government departments detailed the directive. It read, “I am directed to state that the Odisha State Tax on Professions, Trades, Callings and Employment Act, 2000, has been repealed with effect from 01.04.2026 as per the Odisha State Tax on Professions, Trades, Callings and Employment (Repeal) Ordinance, 2026 (copy enclosed). Therefore, it is requested that all Drawing and Disbursing Officers (DDOs) under your administrative control may be instructed to discontinue deduction of Tax on Profession from the salaries of employees with effect from April 2026 onwards.” The directive is expected to streamline payroll processes in government establishments in accordance with the revised legal provisions.