Pune: Maharashtra government has announced the waiver of the Non-Agricultural (NA) tax for societies built on converted agricultural land.
The waiver impacts over 1.5 lakh housing societies and 2.5 lakh apartments across Maharashtra, including around 65,000 such entities in Pune. Additionally, schools, colleges, and commercial buildings will also benefit from the decision.
The NA tax, a legacy from British colonial rule, had been levied on properties constructed on land converted from agricultural to non-agricultural use.
This tax, which societies and establishments were required to pay annually to the district administration, ranged from ₹2.50 to ₹3 per square meter.
However, a large number of societies across the state had accumulated substantial unpaid dues, with some arrears stretching back over a decade.
In Pune alone, the total unpaid NA tax owed by various societies exceeds ₹2 crore. The district administration, in an attempt to recover these outstanding amounts, had recently started issuing notices to societies, warning that failure to pay could lead to punitive action, including the confiscation of properties.
Housing societies, apartments, and even educational institutions constructed on converted agricultural land were legally required to pay the NA tax every year.
When they failed to do so, a penalty of 2% interest per month was applied to the outstanding amount, causing some societies' dues to balloon to as much as ₹15 to ₹16 lakh. Many of these societies found themselves caught in a financial bind, with no immediate solution in sight.
In response to the growing concerns, the Maharashtra Cooperative Housing Federation took the matter to the High Court. In discussions with the federation, the previous Maha Vikas Aghadi government agreed to temporarily stay the collection of the NA tax.
After the Mahayuti government took power, they chose to maintain this stay while deliberating on a permanent solution.
On Friday (October 4), the government made its long-awaited decision, officially waiving the NA tax for societies, apartments, schools, and colleges. Revenue Minister Radhakrishna Vikhe Patil, who had earlier hinted that a decision would be made soon, delivered on his promise.
"This tax was a remnant of British rule and had no place in today’s context," said Suhas Patwardhan, Vice President of the Maharashtra Cooperative Housing Federation.
"The government’s decision to waive it comes as a huge relief, especially for societies that were struggling to pay years of accumulated arrears."
