Request to reduce the NA tax percentage as the existing charges, imposed by the government are exorbitant.

 Alert Citizens Forum of India - Sahakarsutra

102, Ekvira Apts, Uthalsar, Thane West 400601

March 14  2022

The Hon. Revenue Minister,

Govt. Of Maharashtra,

Mantralaya,

Mumbai.

Sub: Request to reduce the NA tax percentage as the existing charges, imposed by the government are exorbitant.

Dear Sir,

With reference to the above, our submission is as under :

1) The Maharashtra government is sending bills of pending NA Tax to housing societies located in suburbs of Mumbai and also adjoining Thane based on 3 per cent of ready reckoner rate. Interestingly, in 2018 state had reduced the NA charges to 0.05 per cent, however, the bills have not been sent accordingly.

NA tax is a British era surcharge applicable on land that has been diverted from agriculture for other purposes.

2) The said tax collection had been stayed since 2006, following strong opposition from citizens staying in suburbs.

In 2017, again the government tried to collect the tax but following strong resistance from citizens it failed to do so.

In 2018, it reduced the NA Tax however, it was never implemented.

3) For around the past two years, several thousands of landholders including housing societies and residential complexes in entire Maharashtra have received demand notices from the local Talathi office for the collection of NA Tax.

The amounts in several cases are absurdly high and have led to utter shock and desperation for thousands of landholders.

For almost the past one decade the Maharashtra State Government was quiet on the subject and suddenly NA Tax demand notices are being issued with huge amounts which also include arrears for the past several years. The method of calculation of these tax amounts is also under question.

4)  NA Tax has a history since the British era when the irrigation and cultivation activity was taxed. Historically there was also a need to contain the conversion of land from Agricultural use to Non-Agricultural use as India faced scarcity of food grains during those days. This is no longer the scenario.

5) The Maharashtra Land Revenue Code 1966 (MLRC) regulates the provisions related to NA Tax.

According to the provisions of MLRC, the residential sites which were originally the Villages or ‘Gaothans’ are exempt from levy & collection of NA tax as they were considered as predominantly residential sites, and no agricultural activity was ever carried on such lands.

Ironically, such ‘Gaothans’ for example Shivajinagar in Pune, South Mumbai District in Mumbai and many such locations in the heart of urban and sub-urban cities continue to be exempted from levy & collection of NA Tax even today. But the lands of residential sites surrounding such ‘Gaothans’ are charged the N.A Tax.

Historically these surrounding lands were cultivated. With the growth of population and increasing need for land for residential purposes, such lands were converted to NonAgricultural use or more specifically for residential use.

One-time Non-Agricultural use conversion tax and premium ‘Nazrana’ was paid by the landholders to the State Government at the time of conversion of the use of their land.

 

6) There is no possibility of agricultural activity now or in future on these residential sites in urban & sub-urban regions in the entire state of Maharashtra. Then why such landholders be charged the NA Tax again and again?

We seek scrapping of the NA Tax for residential sites within the urban & sub-urban regions of Maharashtra.

7) Such residential lands fall within the jurisdiction of Municipal Corporations and Municipal councils and are already being levied with several other taxes such as property tax, water cess etc.

The provisions of the MLRC are also resulting in mechanical classification/discrimination for the purpose of levying and collecting NA Tax between lands of residential sites situated in the proximity of each other or within the same village, town, or city. Such discrimination is affecting the fundamental right of equality guaranteed under the Constitution of India.

The NA Tax is originating from the British era and has no relevance in the current time for the urban and suburban areas within the State of Maharashtra and must be scrapped for such urban and sub-urban areas, as these lands are permanently converted to residential use.

The outdated provisions of the MLRC require an urgent review and the provisions resulting in injustice must be struck off, or the urban and suburban residential lands should be exempted from the NA tax.

We seek your urgent intervention in the matter. Please take immediate decision to provide relief to lakhs of people in the state.

Regards,

For Alert Citizens Forum - Sahakarsutra,

Dayanand Nene           Amit Sawant

President                       Secretary