Maharashtra Budget Session: Govt reduces tax on MHADA’s cessed buildings to ₹250

Giving respite to the residents of MHADA’s (Maharashtra Housing and Area Development Authority) cessed buildings, Deputy Chief Minister Devendra Fadnavis on Wednesday announced the abolition of the increased monthly service tax of ₹665.5.

Instead, the residents will now pay ₹250 tax, stated Fadnavis while speaking in the legislative assembly.

Fadnavis assures redevelopment soon

Replying to the questions raised in this regard by members cutting across party lines, he assured that the plan of redeveloping these unsafe cessed buildings will be implemented soon.

Fadnavis also discussed the notices being sent to the shops located in these structures. 483 shop tenants from Girgaon, Worli and Lower Parel have received the official word about paying taxes.

Till March 2019, these shops were paying a monthly service tax of ₹250 which was hiked to ₹500 from April 2019, with the clause of 10% increase every year. Accordingly, the current service tax stands at ₹665.5 per month. The amount is less as compared to the monthly expenditure of every shop tenant.

Interestingly, the total of expenditure on repair of cessed buildings, property and water taxes, shared electricity charge among other expenses works out to ₹2,000 per month for each shop. A temporary stay has been given now with regard to levying the revised service tax or for issuing notices.

20,000 families receive eviction notice

Meanwhile, it was also brought to the notice of the house that nearly 20,000 families from Girgaon, Worli and Lower Parel have received eviction notices from MHADA, asking them to pay rent arrears which has ballooned to approx ₹80,000.

Underlining that those living in these buildings are financially weak, the members urged the government to stay the notices and also asked to slash the amounts of taxation and rent. Fadnavis has assured that the issue will be duly considered and fair discount will be given in rent. He also promised to look into the matter of some properties which measure less than 500 sq ft but have still received tax notices.