Hsg socs to benefit as cabinet scraps non-agricultural tax
Maharashtra's cabinet has abolished the non-agricultural tax, easing burdens on housing societies and reducing multiple taxation amid urban growth.
MUMBAI: The state cabinet on Friday decided to scrap the non-agricultural (NA) tax in rural and urban parts of the state. This will benefit many housing societies in Mumbai built over a period of time on tracts which were earlier marked for agriculture.
Though the tax liability is marginal, its payment is a cumbersome process.
The tax, imposed during the British era, earned the state government a substantial revenue. Abolishing it will also benefit many developments presently taking place in the periphery of gaothan areas, although gaothans are exempt from it.
Rapid urbanisation and vertical growth in the cities have led to the cancellation of the tax. This will hold good for lands used for commercial and industrial uses as well.
A BJP minister said after the move: “People pay property tax in urban areas, and in many places development cess by various planning bodies and NA tax are charged. As this amounts to multiple taxation, the government wanted to scrap it.”
City BJP chief Ashish Shelar said that he has been demanding the scrapping of NA for “many years”. “I met revenue minister Radhakrishna Vikhe Patil last week for this purpose,” said Shelar.
Welcoming the move, Dominic Romell, president of MCHI said, “Housing societies will benefit for this. They have simplified the procedure. When a property is developed, it is converted from agricultural to non-agricultural land and taxes are paid. It is not proper to charge tax again.’’
An officer from the revenue department in Mantralaya said, “It appears that with elections in mind, the state has decided to scrap the NA tax to get urban votes.”
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