Maharashtra passes amnesty bill for PSU tax dues

The legislative council in Mumbai has approved a new bill that offers tax amnesty for public sector undertakings owned by the central and state governments. This decision was made on Thursday as part of a plan to help these companies settle their pending tax obligations to the Maharashtra government. Finance Minister Ajit Pawar had previously announced this amnesty scheme during the state budget presentation for the fiscal year 2025-26. The government expects to collect around Rs 8,000 crore through this initiative. Most of the unpaid taxes are linked to disputes involving Central government departments and oil marketing companies. Pawar revealed that public sector enterprises currently owe about Rs 25,000 crore in taxes, interest, and other charges. The new legislation will extend the payment deadline until December 2025, encouraging these enterprises to clear their dues. The government believes that these public sector units could contribute significantly to the state’s treasury under the amnesty scheme. The bill allows for concessions if a portion of the dues is paid. When asked why similar schemes were not available for private and cooperative organizations, Pawar noted that such initiatives had already been introduced for those sectors in previous years: 2016, 2019, 2022, and 2024.