The government will withdraw the revised rate of non-agricultural (NA) tax that has hit various housing societies, especially in the suburbs.
The government will place a proposal for this before the Cabinet committee in 15 days.
“We have already stayed the tax hike and now intend to withdraw it,” Minister of State for Revenue, Prakash Solanke, said in the Council on Friday.
Bharatiya Janata Party Member of Legislative Council, Vinod Tawde, had demanded that the hike, which had caused almost a 300 per cent rise in the tax payable, be withdrawn
The NA tax is imposed under the Maharashtra Land Revenue Code 1966 in cases where agricultural land is used for non-agricultural purposes like housing.
The present rate of NA charged is 0.05 per cent of the Ready Reckoner rate.
A large number of people staying in the gaothans of Bandra and Andheri, who were paying Rs 500 until last year, received notices asking them to pay Rs 20,000, according to the Ready Reckoner rate.
At least 175 housing societies in Bandra and Khar received inflated tax bills two years ago. This tax is in addition to property tax.
The NA tax was negligible until 2006, but the state then decided to link it to Ready Reckoner rates. This caused an increase in the tax payable.
“We are already paying so many taxes and this will only be a burden for residents,” Tawde said. “What is the point imposing a stay on the tax? It needs to be withdrawn.”
Congress Legislator Baba Siddique had raised the issue in the Assembly on Thursday. Revenue Minister Narayan Rane, in response, had announced a status quo and assured to review the tax assessment.