The Maharashtra Legislative Council in a move to solve the long-standing tax disputes has sanctioned a bill granting an amnesty to Public sector undertakings (PSUs) of the Central and state governments for their tax dues to the Maharashtra government.
Amnesty Scheme Expected to Generate ₹8K Crore in Revenue
State Finance Minister Ajit Pawar presenting the Maharashtra Budget for FY 2025-26 announced an amnesty scheme aimed at clearing pending tax arrears.
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The state government expects to generate ₹8,000 crore in tax revenue, with a major part of unpaid taxes originating from disputes with Central government departments and oil marketing companies.
Unpaid Dues & Extended Due Dates
Various PSUs owe around ₹25,000 crore in unpaid taxes, interest, and levies to the state government, Ajit Pawar cited. The newly approved legislation extends the due date till December 2025 furnishing these enterprises with a chance to settle their dues and prevent additional financial penalties.
Historically the government has introduced identical amnesty initiatives proposing concessions to organizations that pay a particular part of their outstanding obligations. The same proceeds are anticipated to enhance the revenue of Maharashtra and solve the tax disputes efficiently.
Why PSUs? Private and Cooperative Firms Benefited Before
At the time of the legislative session, the MLC Sachin Ahir asked why the amnesty scheme was not extended to the private and cooperative entities. Ajit Pawar answering the query said that similar tax relief programs were introduced earlier for the private and cooperative organizations in 2016, 2019, 2022, and 2024.
The same updated initiative reaffirms the devotion of the Maharashtra government to address the long-standing tax disputes while improving tax compliance and revenue collection.
Main Takeaways
- Amnesty bill passed for Central and State PSUs with pending tax liabilities
- Maharashtra government anticipates ₹8,000 crore in revenue from the initiative
- ₹25,000 crore in unpaid dues to be settled by December 2025
- Previous amnesty schemes provided relief to private and cooperative sectors
In resolving tax disputes, facilitating financial burdens on PSUs, and reinforcing Maharashtra’s fiscal position the amnesty scheme is ready to play a significant role.
