Kolkata, Dec. 14 -- The Urban Development and Municipal Affairs (UD&MA) department has amended the West Bengal Municipal Act, 1993, to allow up to 50 per cent exemption on property tax for land or buildings used by the Information Technology (IT) industry and Information Technology Enabled Services (ITES).
The exemption will be available for twelve years, beginning from the quarter following approval by the state government.
The decision comes amid a surge in IT-sector investments in West Bengal, which has drawn national attention. In its July 21, 2025, issue, India Today magazine, in a report titled "A New IT Sunrise", noted that leading firms are increasingly choosing IT hubs in the state capital, citing robust infrastructure and a strong talent pool. The exemption will apply to industries exclusively engaged in software development and software programming.
ITES units covered under the provision include call centres, claim processing, medical and legal transcription, content development and computer animation, data processing, computer-aided engineering and design, remote maintenance, revenue accounting, support centres, website services, and allied activities such as accounting, data processing and data mining. Other services notified by the state IT department as ITES will also be eligible.
While major IT activity remains concentrated in Tier-I cities, the state IT department has stepped up efforts to promote IT growth in Tier-II cities, including Siliguri, Kalyani, Durgapur, Krishnanagar, Asansol and Bolpur, to ensure balanced regional development.
IT exports from West Bengal have risen more than eightfold-from Rs 4,500 crore in 2011, when the Mamata Banerjee government first came to power, to around Rs 35,000 crore at present.
Published by HT Digital Content Services with permission from Millennium Post.