Maha Govt stays recovery of non-agricultural tax in Mumbai suburbs till further decision
Revenue Minister Balasaheb Thorat clarifies that the stay will be only in Mumbai suburbs which is important ahead of BMC elections
He announces formation of a committee to change the rules and regulations in this regard permanently
In the urban areas of the state as per the government decision of the year 2018, the arrears of non-agricultural tax from the year 2001 and the recovery of current non-agricultural tax was underway
These notices have been issued at a rate of nearly 1,500 per cent higher than the previous rates, which is exorbitant, claims BJP MLA Ashish Shelar
Mumbai: In a big relief for residents of Mumbai suburbs, the Maharashtra government announced a stay on the recovery of non-agricultural (NA) tax, bowing to the strong demand of ruling and opposition members. The announcement was made by Revenue Minister Balasaheb Thorat during his reply to the calling attention motion moved by BJP legislator Ashish Shelar in the state assembly. Ruling and opposition members argued that residents of housing societies had already been hard-hit by the pandemic and the lockdown and therefore, the government should immediately suspend the recovery of NA tax. Thorat also announced that a committee would be set up to change the rules and regulations in this regard permanently.
Thorat’s announcement is crucial, considering the upcoming elections to the BrihanMumbai Municipal Corporation, where estranged allies, the Shiv Sena and BJP, will be pitted against each other for the second time after the 2017 elections.
“In the urban areas of the state as per the government decision of 2018, arrears of non-agricultural tax from 2001 and the recovery of current non-agricultural tax was underway. In this context, many organizations and people’s representatives had made their representations. They had claimed that as the levy was unreasonable and the payment of arrears was beyond the reach of the co-operative housing societies, the recovery should be stayed and the NA tax should be waived. Considering the sentiments of the House, the recovery of non-agricultural levy is being stayed,” said Thorat in his response.
Earlier, Shelar had pointed out that the non-agricultural tax notices issued to over 60,000 residents in suburban Mumbai were unjust.
“When buildings, chawls or other residential structures were being built in suburban Mumbai, developers had paid non-agricultural tax. Even after this, they are being served these tax notices. Despite the earlier government following it up at various levels, such notices are served, time and again. Why are the officials from this department doing this?” he questioned.
He mentioned that notices had been issued to three societies from the Bandra west assembly constituency - Saraswat Housing Society, St Sebastian Society and Salsette Society.
“These notices have been issued at a rate nearly 1,500 per cent higher than the previous rates, which is exorbitant. While on one hand people are reeling under the economic crisis owing to the Covid-19 pandemic, on the other hand, the government is levying huge taxes and burdening the people. Also, this tax is not levied on societies in Mumbai city but only on constructions in suburban Mumbai,” said Shelar. He questioned how there could be two different rules for a city.
He demanded that the government immediately suspend these notices and abolish this tax permanently.
Other BJP legislators, including Yogesh Sagar, Atul Bhatkalkar, Parag Alavani, Vidya Thakur, Manisha Chaudhary and Bharati Lavekar, also took an aggressive stance and demanded the immediate suspension of these notices.
“If the government had collected this non-agricultural tax at the time of construction, then why is this tax being collected again and again?” they asked.
Thorat tried to defend the notices served to the residents and the recovery of the NA tax, citing it was one of the sources for the state to mobilize revenue. However, he later yielded to the members’ demand and announced a stay on the recovery of the NA tax pending further decision.
