Maharashtra revenue minister Chandrashekhar Bawankule informed the legislative assembly that the state government has abolished the non-agricultural (NA) tax on land used for residential, commercial and industrial purposes in urban areas.
Bawankule acknowledged that although the decision to scrap the NA tax was approved by the state cabinet in October 2024, it could not immediately be enacted into law due to administrative delays.
Providing an update in the assembly, the minister said the cabinet revisited the matter in November 2025 and resolved to remove the legal provisions that allowed the levy of NA tax across the state. The change was later formalised through an amendment to the Maharashtra Land Revenue Code.
“Accordingly, the provisions regarding the levy of NA tax have been repealed as per the Maharashtra Land Revenue (Second Amendment) Act, 2025, dated Dec 31, 2025. A lump sum conversion surcharge will be levied as mentioned in Section 47 of the Amendment Act,” Bawankule said in his reply.
The minister was responding to a query raised by MLA Bhimrao Tapikar in the assembly regarding the status of the tax reform.
“Also, in accordance with the amendment, the revenue and forest department had in Feb 2026 instructed that the NA tax levied annually on uncultivated properties in the state should not be levied, and the arrears of NA tax levied annually up to the date of the amendment should not be recovered, instead, a lump sum conversion surcharge should be levied as mentioned in Section 47 of the amendment Act,” Bawankule said.
Officials confirmed that the NA tax has now been permanently abolished in urban areas. The reform, introduced about a year and a half after it was first proposed, is expected to encourage redevelopment and help regularise ageing housing societies in major cities such as Mumbai, Pune and Thane.
The notification issued in February also amends the Maharashtra Land Revenue Code by removing the requirement for a separate non-agricultural land-use permission from the district collector. However, officials clarified that this will apply only if the intended land use complies with the relevant development plan, regional plan or development control regulations.
Source: The Times of India
