Maharashtra Government Abolishes NA Tax, Bringing Relief to Over 2 Lakh Housing Societies

Pune: The long-standing demand of societies built on converted agricultural land has finally been met. The state government, in a significant move, has decided to abolish the ‘NA Tax’ (non-agricultural tax) levied on these societies since the British era.

The decision, announced on Friday, comes just ahead of the assembly elections, and provides relief to housing societies, apartments, schools, colleges, and commercial buildings.

According to government regulations, all housing cooperative societies and commercial and industrial establishments in urban and rural areas (excluding village areas) are required to pay non-agricultural tax.

Many housing projects across the state, including Pune, have been built on land that was once agricultural. These societies have been burdened with the annual payment of non-agricultural tax. A failure to pay this tax resulted in a penalty of 2% per month on the outstanding amount, with rates as high as Rs. 2.5 to 3 per square meter.

However, many societies were unaware of this tax, leading to a significant backlog. Some societies had outstanding dues spanning a decade or more, with penalties accumulating to lakhs of rupees.

In Pune alone, there was a backlog of over two crore rupees. The district administration had issued notices to these societies to recover the dues and had even threatened seizure. This had caused considerable panic among society members.

This was a British-era law. The state government had been approached with this request and had agreed to it, but the decision was pending. A petition was filed in the High Court through Advocate Satya Mule. Finally, the state government has decided to abolish this tax. The state government deserves to be commended for this decision.
– Suhas Patwardhan, President, Maharashtra State Cooperative Housing Federation