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Maha govt abolishes NA tax payable by housing societies, commercial & industrial establishments
In a major policy decision, the Maharashtra Cabinet chaired by Chief Minister Eknath Shinde on Friday decided to permanently scrap the non-agricultural (NA) tax payable by housing societies, industrial and commercial establishments in rapidly growing urban areas.
Mumbai : In a major policy decision, the Maharashtra Cabinet chaired by Chief Minister Eknath Shinde on Friday decided to permanently scrap the non-agricultural (NA) tax payable by housing societies, industrial and commercial establishments in rapidly growing urban areas.
The Cabinet took the decision to ease the burden on the public by abolishing the NA tax on the lands on which the residential buildings and high-rise apartments are coming up in a big way.
The Cabinet also decided to abolish the NA tax on lands under commercial and industrial use.
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 appealing the abolition of the NA tax levied on housing societies, apartments, and plotted developments.
According to the government sources, NA tax is applicable on using agricultural land for non-agriculture purposes and it is applicable to all properties, including housing societies, plots, commercial units, and industrial sheds, that do not fall in the gaothan areas as mentioned in Maharashtra Land Revenue Code, 1960.
The revision in NA tax is done after every five to 10 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.
Shelar had argued that the tax was imposed on around 20,000 housing societies every year even after it was paid at the time of construction.
Thorat had then announced a stay on the recovery of NA tax temporarily.
Meanwhile, the Cabinet gave an approval for two-year imprisonment and a fine up to Rs 1 lakh for those indulging into 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.
The Cabinet decided to increase the term of the imprisonment in line with the amendments to the Central Act of 1958.
