The State Government of Maharashtra has taken step to regulate taxes other than non-agricultural (NA) by implementing new formula. The old formula will no longer be used to calculate taxes and now bills will be generated using the new formula. This decision was taken by revenue minister Chandrakant Dada Patil along with Bandra west MLA and Ashish Shelar, the BJP’s Mumbai president in a recent meeting.
As per Maharashtra land revenue code 1966 the non agricultural tax is generally imposed in areas which are recognized as agricultural zones outside gaothans where non farming activities are carried out also the taxes levied are over and above property tax.
In 2006 the tax was raised nearly by 1500% and in spite a subsequent stay on tax has been brought still residents where billed arbitrarily in November 2017. In a case of Salsette catholic CHS in Bandra they were levied rupees 44,553 for three plots for 5 years and after the rise they received a bill of over Rs.81 lakh.
As the residents in the suburbs had to face financial pressure the state has decided to bring down the percentage of NA tax from 3 % to 0.05% of ready reckoner rate.
Shelar, who was facing this issue for last one year stated, " The NA taxes will now be imposed by using new formula and also the interest housing societies will no longer be charged with old formula, the revenue minister as directed the collector to conduct a survey and make fresh calculation as per new rates and until this old bills will not be sent."
Anil Joseph, president, Perry Road Residents' Association is of the view that, "NA tax is levied on agricultural lands near gaothans, converted into residential properties thus this tax is an antiquated tax and has no relevance in modern times. No place for agriculture is left in the Mumbai suburbs or the Island City. This tax should be scrapped as it is archaic and irrelevant. The MLA should take proper stand to scrap this tax altogether. It serves no purpose but to harass suburban residents.”
Gautam Rao, a resident of Guzderbandh, Santacruz West, stated, “Since interest will not be levied, the old rate is to be paid, which is fair. But the new rate, which is 0.05 per cent of the Ready Reckoner rate, should be revised every five or 10 years, like property tax. This NA tax has always been discriminatory against suburban residents. The growth rate is higher in the suburbs, the population is higher and traffic density has also increased. Anyway, suburban residents contribute more property tax than south Mumbai, so this tax should be waived completely.”
Shelar said that he was opting for an amendment in section 44 of the Maharashtra Land Revenue Code (MLRC) (1966). "He will move a private member's bill to amend this MLRC to completely withdraw NA taxes for the entire suburbs," he further said.
What is NA tax and recent changes?
- Under the Maharashtra Land Revenue Code, 1966, non-agricultural tax is imposed in areas which were recognized as agricultural zones outside gaothans, where there is non-farming activity
- NA tax is levied over and above property tax
- The tax was suddenly increased by over 1,500 per cent in 2006, and, despite a subsequent stay on the taxes, residents were billed arbitrarily in November 2017
- Under pressure from residents’ groups in the suburbs, the state decided to bring down the percentage of NA tax from 3 per cent to 0.05 per cent of the Ready Reckoner rate
- The interest that was earlier levied using the old formula will no longer be charged.
Courtesy/By: Renu Kathale
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14 Jun 2019
