A Co-operative Housing Society in Mumbai
A Co-operative Housing Society in Mumbai
File Photo

The Maharashtra Societies Welfare Association (MahaSeWA) will make a representation before the revenue ministry over the non-agricultural (NA) Tax issue, said Ramesh Prabhu, chairman of the association representing about 30,000 housing societies across Mumbai. Prabhu said, "The representation will mainly focus on reducing the NA tax percentage as the existing charges, imposed by the government are exorbitant."

Meanwhile Prabhu asserted that if a nominal amount is charged as NA Tax, no housing society would refuse to pay.

The Maharashtra government is sending bills of pending NA Tax to housing societies located in suburbs based on 3 per cent of ready reckoner rate. Interestingly, in 2018 state had reduced the NA charges to 0.05 per cent, however, the bills have not been sent accordingly.

NA tax is a British era surcharge applicable on land that has been diverted from agriculture for other purposes.

The said tax collection had been stayed since 2006, following strong opposition from citizens staying in suburbs. In 2017, again the government tried to collect the tax but following strong resistance from citizens it failed to do so. In 2018, it reduced the NA Tax however, it was never implemented.

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