In a big policy decision, the Maharashtra Cabinet, chaired by Chief Minister Eknath Shinde, decided on Friday to permanently scrap the non-agricultural (NA) tax for housing societies, industrial and commercial establishments in fast-growing urban areas.
The Cabinet made this decision to lighten the burden on the public by removing the NA tax on the land where many residential buildings and high-rise apartments are being constructed.
The Cabinet also decided to abolish the NA tax on land used for commercial and industrial purposes.
At present, the state government has permanently abolished the NA tax on lands in the Gaothans areas of the villages.
The state housing federation in Maharashtra had made a series of representations to the state government, requesting the removal of the NA tax imposed on housing societies, apartments, and plotted developments. According to government sources, the NA tax is charged when agricultural land is used for non-agricultural purposes, and it applies to all properties, including housing societies, plots, commercial units, and industrial sheds, that are not located in the gaothan areas as defined in the Maharashtra Land Revenue Code, 1960. The NA tax is revised every five to ten years.
Earlier, the Maha Vikas Aghadi in March 2022 had ordered a temporary stay on the recovery of NA tax by the State Revenue Department from housing societies in Mumbai’s suburbs. Former Revenue Minister Balasaheb Thorat had made the announcement in the Assembly in response to a question by BJP legislator Ashish Shelar who had raised concerns over the recovery of NA tax, saying people were yet to recover from the Covid-19 pandemic.
Earlier, the Maha Vikas Aghadi had ordered a temporary halt to the collection of NA tax by the State Revenue Department from housing societies in Mumbai’s suburbs in March 2022. Former Revenue Minister Balasaheb Thorat made this announcement in the Assembly after BJP legislator Ashish Shelar raised concerns about the recovery of the NA tax, pointing out that people were still recovering from the Covid-19 pandemic.
Shelar argued that the tax was imposed on around 20,000 housing societies each year, even though it had already been paid during construction.
Thorat then announced a temporary stay on the collection of the NA tax. Meanwhile, the Cabinet approved a penalty of up to two years in prison and a fine of up to Rs 1 lakh for anyone found damaging ancient and historical buildings.
This provision is being made to prevent those who harm such structures and violate their sanctity.
At present, as per the Maharashtra Ancient Monuments and Archaeological Sites and Ruins Rules, 1960, (Maharashtra Act No. 12 of 1961) there is a provision for a three- month imprisonment and fine up to Rs 5,000 or both. Since 1960, there has been a rise in the penalty.