Government suspends non-agricultural tax notices to housing societies as it has a tax rate 1,500 per cent higher than earlier
The state will set up a committee to change the rules and regulations for the tax imposed that were recognised as agriculture zones, but used later for housing
The non-agricultural (NA) tax notices that have been issued to housing societies in Mumbai have been suspended after the issue was raised in the Assembly by BJP legislator Ashish Shelar on Tuesday. Over 60,000 residents were told to cough up the NA tax that was 1,500 per cent higher than previous rates.
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Suspending the notices, Revenue Minister Balasaheb Thorat said that a committee would be set up to change the rules and regulations for the tax imposed in areas that were recognised as agriculture zones, but used later for housing.
Ashish Shelar, BJP legislator
Shelar, the BJP MLA from Bandra West, told the house through the calling attention motion that the builders/owners had paid the NA tax when they built residential structures including chawls and yet had been served notices by officials. He cited the examples of three societies in Bandra West—Saraswat Housing Society, St. Sebastian Society and Salsette Society.
“The notices were issued at a rate of nearly 1,500 per cent higher than the previous rates. The people are reeling under economic crisis owing to the COVID-19 pandemic and yet the government is levying huge taxes, thus burdening them further. This tax is not levied on the societies in Mumbai Island city but only in the suburban district. There cannot be two different rules for one city,” Shelar stated.
He demanded suspension of the notices and abolition of the NA tax. His views were supported by the ruling MLAs. Party colleagues from the affected constituencies in suburban Mumbai, Yogesh Sagar, Atul Bhatkalkar, Parag Alavni, Vidya Thakur, Manisha Chaudhary and Bharati Lavekar also took part in
the discussion.
Partial OC issue to be resolved
Shiv Sena’s Sunil Prabhu began the discussion, saying that some societies in Lower Parel, Parel and Bhoiwada were given notices for paying municipal taxes. “The notices should go to the developers, not residents,” he said. Shelar, Sada Sarvankar, Atul Bhatkhalkar, Amin Patel and Ajay Chaudhari participated in the debate.
Urban Development Minister Eknath Shinde said that a committee would be set up to offer the residents who are made to pay double in municipal taxes because their builder had cheated them by taking a partial occupancy certificate (OC) before abandoning the residents.
Asking a question, Shelar said the middle class in Mumbai has been at the receiving end in the housing sector. “When their houses are redeveloped, the builder hands over new homes with a partial occupancy certificate. The developer, also at times, gets an occupancy certificate for a few floors but constructs more without an appropriate certificate. As a result, the owners are forced to pay the property, sewage and water taxes at double the existing rates. Many such developers have vanished without a trace,” said Shelar.
Shinde accepted the argument, saying that many such complaints have been received and it needed a policy decision to resolve the issue. He said, if required, the law will be amended. A committee will be set up to study the matter and decision taken within a month, he added.
60k
No. of residents who had been asked to pay NA tax
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