While hammering out more than 32 decisions in what was probably the last cabinet meeting ahead of the state assembly elections, the Mahayuti government announced the abolition of non-agricultural (NA) tax for citizens. While the announcement comes as a major relief, it throws up a few questions.
Non-agricultural tax is levied on land parcels under residential, commercial and industrial use. It is applicable to lands other than gaothans, on extended urban settlements.
According to experts, the NA tax generates an annual revenue between Rs 12,000 crore and Rs 15,000 crore for the state government. Residential users contribute to almost half this amount, according to officials familiar with the workings of the revenue department, which collects it.
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