NA Tax Finally Cancelled: Relief for Over Two Lakh Housing Societies in Maharashtra
Pune: In a significant decision, the Maharashtra state government has waived the ‘NA Tax’ (Non-Agricultural Tax), a levy that has been imposed on societies since the British era. This move brings immense relief to more than two lakh housing societies, apartments, schools, colleges, and commercial buildings, both in urban and rural areas across the state, excluding Gavthan areas. The announcement, made on Friday, follows a longstanding demand to convert agricultural land into non-agricultural land and to waive the accompanying tax burden.
Background of the NA Tax
The NA tax has been a source of financial stress for many housing societies in cities like Pune, where agricultural land was converted into non-agricultural land for construction. These societies were obligated to pay the tax annually, with an interest of 2% per month on arrears. The rate of the tax ranged from ₹2.5 to ₹3 per square meter.
- Lack of Awareness: Many societies were unaware of their obligation to pay the NA tax. As a result, numerous societies failed to comply, accruing arrears over the years. In some cases, outstanding amounts, including penalties, have reached several lakhs.
- Significant Arrears in Pune: Pune city alone has arrears exceeding ₹2 crore. The district administration had issued notices to recover these dues and warned of penal actions, including confiscation of property, causing concern and confusion among society members.
Long Battle for Justice
The imposition of this tax was rooted in a law dating back to the British period. Although complaints were raised with the state government, no action was initially taken. Eventually, a petition was filed in the High Court, pushing for the cancellation of the tax.
Following the legal proceedings and increasing pressure from housing cooperatives, the state government has finally responded by cancelling the NA tax, much to the relief of thousands of affected societies.
#मंत्रिमंडळनिर्णय
— MAHARASHTRA DGIPR (@MahaDGIPR) October 4, 2024
राज्यातील अकृषिक कर आकारणीचा जनतेवरील बोजा पूर्णपणे काढण्याचा निर्णय घेण्यात आला आहे. गावठाणाबाहेर रहिवासी घरांची संख्या वाढत असल्याने आणि शहरी भागात बहुमजली इमारती वाढत असल्याने अशा इमारतींखालील जमिनींचा संपूर्ण अकृषिक कर रद्द करण्याचा निर्णय घेण्यात आला आहे. pic.twitter.com/CqlvNHttcR
Responses and Reactions
Suhas Patwardhan, President of the Maharashtra State Cooperative Housing Society Federation, praised the government for addressing the longstanding demand. “This decision has brought justice to housing societies and other establishments. We are thankful to the state government for this much-needed relief,” he said.
Implications of the Decision
- No More Annual Tax Burden: Housing co-operative societies and commercial establishments will no longer need to pay the annual NA tax, removing a significant financial burden.
- End of Arrears and Penalties: Societies that had accumulated arrears over the years will now have those dues waived, along with the associated penalties.
This decision is expected to bring immense financial relief to more than two lakh societies and contribute to the stability of housing and commercial sectors in Maharashtra.
