PUNE: Nearly ten months after the state cabinet announced the abolition of the non-agricultural (NA) tax for urban housing societies, confusion continues due to the lack of a formal government resolution (GR).
The management of housing societies across the state is uncertain whether to keep paying the tax until official guidelines are issued.
The cabinet, led by Eknath Shinde, approved the removal of the NA tax in October 2024, just before the state assembly elections, aiming to relieve residents in urban areas like Pune and Mumbai who have been paying both property tax and NA tax. Housing societies have since called on the state government to issue a formal GR concerning this matter.
“We have notified the housing societies about the scrapping of the NA tax. However, many have received payment notices after October. This has led to widespread confusion. We urge the government to expedite the issuance of a GR,” stated Suhas Patwardhan, chairperson of the Maharashtra State Housing Federation.
The NA tax, a relic from the British era, applies to properties on agricultural land within municipal limits, except for those in designated gaothan areas. The abolition has long been sought by housing society federations.
Despite the cabinet’s decision, the absence of an official GR has left societies in a state of indecision. Some have halted tax payments based on the cabinet announcement, while others continue to pay to avoid penalties.
Senior officials from the revenue department acknowledged the delay, attributing it to the timing of the assembly elections. “The law and judiciary department postponed the GR issue last year due to the election code of conduct. It was left to the new government to proceed with it,” a revenue department official told TOI.
A senior official confirmed that the GR is expected to be discussed in the next cabinet meeting and could be notified before August 15.
“We understand the practical issues that societies face. Clear directives will be issued through the GR shortly, providing clarity for those who have paid the NA tax and those who have not,” the official added.
Meanwhile, housing societies are divided in their approaches. “We’re aware that the tax has been abolished, but without an official GR, we’re hesitant to discontinue payments,” remarked a senior committee member from a housing society in Kondhwa.
“Until the GR is issued, we can’t provide clear instructions to officials or societies,” noted a senior district administration official.
The housing federation has emphasized that this issue affects thousands of housing societies and has urged the government to issue a resolution without further delay. “This matter is crucial for middle-class homeowners. Delays only lead to more confusion. The government must act swiftly,” urged Patwardhan.
