The Maharashtra legislative council has sanctioned a new tax amnesty scheme aimed at resolving pending tax arrears of public sector undertakings (PSUs) from the Central and state governments.
Announced by Maharashtra’s Finance Minister Ajit Pawar during the FY 2025-26 budget presentation, this initiative seeks to recover an estimated Rs 8,000 crore in unrealized tax revenue.
Key Highlights of the Tax Amnesty Scheme:
- Objective: Facilitate the clearance of outstanding tax dues by public sector enterprises.
- Scope: Covers pending disputes involving Central government departments and oil marketing companies.
- Outstanding Dues: Approximately Rs 25,000 crore, including tax, interests, and levies.
- Deadline: Extended until December 2025 for enterprises to settle their dues.
- Revenue Impact: The Maharashtra government anticipates a significant boost to the state treasury.
Ajit Pawar emphasized that both Central and state public sector enterprises are expected to participate in the scheme, ensuring a steady inflow of revenue to the state’s coffers.
Precedents and Policy Decisions
Responding to queries from legislators on why private and cooperative organizations were not included, Pawar cited past amnesty initiatives in 2016, 2019, 2022, and 2024, specifically designed for private sector entities. The state government aims to tailor tax relief measures based on the financial ecosystem’s distinct needs.
Implications for Maharashtra’s Economy
This move is expected to streamline tax compliance, reduce litigation, and enhance the state’s financial stability. By resolving long-pending disputes, the initiative aligns with Maharashtra’s broader fiscal strategy, ensuring liquidity for development projects.
