Non-agricultural tax to be levied based on new formula

The state executive has decided to put in force a revised formula to calculate non-agricultural (NA) tax expenses. The expenses will now be generated the use of the new formula, and the hobby that was once previous levied the use of the outdated formula will not be charged.

This was once decided at a contemporary assembly Revenue Minister Chandrakant Dada Patil had with Bandra West MLA and the BJP's Mumbai president, Ashish Shelar.

Under the Maharashtra Land Revenue Code, 1966, non-agricultural tax is imposed in spaces that have been recognised as agricultural zones out of doors gaothans, where there may be non-farming job. It is levied over and above assets tax.

The tax was once unexpectedly larger via over 1,500 consistent with cent in 2006, and, regardless of a next stay on the taxes, residents had been billed arbitrarily in November 2017. For example, the tax for three plots of Salsette Catholic CHS in Bandra was once previous Rs 44,553 for five years. After the hike, they won a bill of over Rs 81 lakh.

Bowing to pressure from residents' teams in the suburbs, the state had decided to convey down the percentage of NA tax from 3 consistent with cent to 0.05 consistent with cent of the Ready Reckoner fee.

Shelar, who has been pursuing the problem since final yr, mentioned, "The NA tax bills will now be generated with the new formula. Also, the interest housing societies used to be charged using the old formula will no longer be levied, and will be kept on hold, as the revenue minister has asked the collector to conduct a survey and make a fresh calculation as per the new rates. Till then, the old bills will not be sent."

Anil Joseph, president, Perry Road Residents' Association mentioned, "NA tax is levied on agricultural lands near gaothans, converted into residential properties. It is an antiquated tax that has no relevance in modern times. There are no places in the Mumbai suburbs or the Island City where agriculture is carried out. This tax should be scrapped as it is archaic and irrelevant. The MLA would do well to fight to scrap this tax altogether. It serves no purpose but to harass suburban residents."

Gautam Rao, a resident of Guzderbandh, Santacruz West, mentioned, "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 additionally mentioned that he was once in search of an modification in phase 44 of the Maharashtra Land Revenue Code (MLRC) (1966). "I will move a private member's bill to amend this MLRC to completely withdraw NA taxes for the entire suburbs," he added.

What is NA tax, and what has changed?

»Under the Maharashtra Land Revenue Code, 1966, non-agricultural tax is imposed in spaces that have been recognised as agricultural zones out of doors gaothans, where there may be non-farming job
»NA taxis levied over and above assets tax
»The taxwas unexpectedly larger via over 1,500 consistent with cent in 2006, and, regardless of a next stay on the taxes, residents had been billed arbitrarily in November 2017
»Under pressure from residents’ teams in the suburbs, the state decided to convey down the percentage of NA tax from 3 consistent with cent to 0.05 consistent with cent of the Ready Reckoner fee

»The hobby that was once previous levied the use of the outdated formula will not be charged