Maharashtra Cabinet Abolishes Non-Agricultural Tax, Easing Burden On Housing Societies
Maharashtra Cabinet Abolishes Non-Agricultural Tax, Easing Burden On Housing Societies
Pune, October 5, 2024: In a major relief for housing societies and landowners, the Maharashtra state cabinet on Friday decided to abolish the non-agricultural (NA) tax in both rural and urban areas. The move will benefit numerous housing societies in Mumbai that were constructed on land previously marked for agricultural use.
The NA tax, a remnant from the British era, had long been a source of revenue for the state government. However, its collection process was considered cumbersome. While the tax itself was marginal, its payment process was often complicated and time-consuming.
The abolition of the NA tax is also expected to benefit developments occurring on the periphery of gaothan areas, although these areas were exempt from the tax. In addition to residential projects, the tax exemption will apply to lands used for commercial and industrial purposes, contributing to the state’s growing urban landscape.
A BJP minister explained the decision, saying, “In urban areas, people already pay property tax, development cess, and NA tax. This amounted to multiple taxation, so the government decided to scrap it to reduce the financial burden on citizens.”
City BJP chief Ashish Shelar, who had been advocating for the removal of the NA tax for years, welcomed the decision. “I have been demanding the abolition of this tax for a long time. I recently met with Revenue Minister Radhakrishna Vikhe Patil to push for this change,” Shelar said.
An officer from the state revenue department suggested that the decision may have been influenced by upcoming elections, aiming to appeal to urban voters. Nevertheless, the abolition of the NA tax is widely seen as a significant step towards reducing the financial burden on property owners amidst rapid urbanization in Maharashtra.
