Nagpur: A delegation from the Nag Vidarbha Chamber of Commerce (NVCC) submitted a memorandum to Additional Commissioner of State GST, Nagpur, Tejrao Pacharne, demanding the abolition of profession tax in Maharashtra. The delegation urged the state government to eliminate the outdated tax for the benefit of the business and professional community.
Present on the occasion were NVCC President Arjundas Ahuja, Vice-Presidents Farukhbhai Akbani and Swapnil Ahirkar, Secretary Sachin Puniani, PRO CA Hemant Sarda, Indirect Tax Committee Convener CA Ritesh Mehta, and members Jayprakash Parekh and Narayan Toshniwal.
Gold Rate
28 July 2025
The meeting began with NVCC President Ahuja welcoming Pacharne with a floral bouquet and shawl. Ahuja highlighted NVCC’s role as a bridge between the business community and government departments, working towards resolving traders’ issues through consistent engagement and submission of representations.
The Chamber’s memorandum specifically called for the repeal of the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, which mandates the collection of profession tax. Ahuja emphasized that the tax adds an unnecessary compliance burden despite the introduction of GST, which aimed to unify and simplify the tax system.
Vice-President Farukhbhai Akbani stated that while profession tax was not subsumed under GST, it contradicts the spirit of tax simplification and leads to duplication and complexity. He added that the GST regime was introduced to consolidate multiple indirect taxes, but profession tax continues to create compliance challenges.
Vice-President Swapnil Ahirkar pointed out that although profession tax is a direct tax, it involves processes similar to GST, such as registration, periodic returns, and assessments, adding to the regulatory burden on businesses and professionals. He noted that the revenue generated from profession tax is negligible compared to the time, labor, and cost involved in compliance.
Secretary Sachin Puniani cited examples of progressive states like Delhi and Haryana, which have scrapped profession tax in favor of ease of doing business. He said Maharashtra too should follow suit and relieve its citizens and traders from this outdated levy.
CA Ritesh Mehta, Convener of the Indirect Tax Committee, said that the tax disproportionately affects micro and small businesses as well as salaried employees, who already contribute through income tax and indirect taxes like GST. He said requiring small enterprises to register and comply for a nominal tax of Rs 2,500 results in unnecessary legal complications and administrative strain.
PRO CA Hemant Sarda concluded by urging the State GST department to formally recommend the abolition of profession tax to the state government. He said that if immediate abolition is not feasible, the exemption threshold should be increased and procedures simplified. This, he added, would reflect the government’s commitment to tax reforms, reduce compliance burdens, improve administrative efficiency, and foster a taxpayer-friendly environment.
