The Maharashtra Cabinet has approved a significant move to ease the financial burden on property owners in smaller towns by waiving the 2% monthly penalty on property tax arrears in municipal councils, nagar panchayats, and industrial township areas. The decision is aimed at facilitating timely property tax payments and addressing concerns over penalties that sometimes exceed the original tax amount, causing payment delays.

Abhay Yojana: A Step Towards Easing Tax Burden

The new scheme, titled ‘Abhay Yojana’, introduces a partial waiver of property tax penalties. According to a press release issued by the Chief Minister’s Office (CMO), the penalty imposed on property tax arrears often becomes so large that it deters property owners from paying up. By waiving this penalty, the state government hopes to encourage more prompt payments, thereby improving tax collection across smaller towns and industrial townships in Maharashtra.

Amendments to Strengthen Local Governance

In addition to the property tax relief, the Maharashtra Cabinet also approved amendments to the Maharashtra Municipalities, Nagar Panchayats, and Industrial Townships Act, 1965. These amendments empower members of municipal councils, nagar panchayats, and industrial townships to initiate the removal of the president from their post. Currently, at least 50% of the members must submit a resolution to the district collector to request the president's removal. The new amendment will lower this threshold to two-thirds of the elected members, making it easier to remove a sitting president in these local bodies. A special session will be convened within 10 days for voting, following the submission of a proposal.

Government to Issue Ordinance for Immediate Implementation

Given that the state legislature is not in session, the government will issue an ordinance to ensure the immediate implementation of these changes. The property tax waiver and governance amendments are expected to enhance administrative efficiency and streamline the tax collection process.

Conclusion

By waiving the 2% monthly penalty on property tax arrears in smaller towns, the Maharashtra Cabinet aims to alleviate financial pressures on property owners while encouraging more timely payments. The ‘Abhay Yojana’ and governance amendments mark a progressive step towards better management of local resources and improved governance within the state.