Govt stays collection of non-agricultural tax in Mumbai suburbs

NA tax is British-era taxation applicable on land that had been converted from agricultural land to other use.

Mumbai: In a relief to residents of Mumbai suburbs, the state government on Tuesday announced a stay on the recovery of non-agricultural (NA) tax, after demands were raised in the legislative assembly. State revenue minister Balasaheb Thorat announced it in the house during a discussion on the issue.

The recovery of the arrears of non-agricultural tax from the year 2001 was underway in the urban areas of the state, as per the government decision in 2018. (Satish Bate/HT Photo)

NA tax is British-era taxation applicable on land that had been converted from agricultural land to other use. The tax is levied in suburban Mumbai, while Mumbai city has large tracts of leased land.

The recovery of the arrears of non-agricultural tax from the year 2001 was underway in the urban areas of the state, as per the government decision in 2018.

In his reply, Thorat said that many organisations and public representatives had made presentations before the department regarding the NA tax. “They had demanded that the levy was unreasonable and the payment of arrears was beyond the reach of the co-operative housing societies and had demanded that the recovery be stayed and the NA tax should be waived. Considering the sentiments of the House, the recovery of non-agricultural tax is being stayed,” he added in his response.

According to government officials, the state started sending NA tax notices to residents in suburban Mumbai from December 2021. The move attracted a lot of criticism, especially at a time when the Uddhav Thackeray-led government had decided to waive off property tax for houses of 500 sqft and less. The lower-middle-class population in Mumbai is widely considered to be the core voter base of Shiv Sena, while the middle-class and upper-middle-class population back the Bharatiya Janata Party.

BJP legislator Ashish Shelar, through a calling attention motion, said the revenue department had issued NA tax notices to over 60,000 residents in suburban Mumbai, while Mumbai city was exempted from the tax, which was unjust.

Shelar said that the developer pays NA tax while building a residential structure, then why are notices served after the payment was done. “These new rates on which the notices were issued are 1,500% higher than the previous rates, which is exorbitant. While on one hand, people are reeling under economic crisis after the Covid-19 pandemic and the government, on the other hand, is levying huge taxes and burdening the people,” he said.

Several BJP legislators, including Atul Bhatkalkar, Parag Alavni, Yogesh Sagar, Manisha Chaudhary, Vidya Thakur and Bharati Lavekar, took an aggressive stance and demanded immediate suspension of these notices.