In a move with wider fiscal and administrative implications, the Government of Odisha has officially discontinued the deduction of professional tax from employees’ salaries with effect from April 2026, following the repeal of the two-decade-old law governing the levy.
The decision comes after the promulgation of the Odisha State Tax on Professions,
Trades, Callings and Employments (Repeal) Ordinance, 2026, which nullifies the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000.
The repeal has effectively ended the state’s authority to impose professional tax, a levy traditionally collected from salaried individuals and professionals by several states across India.