Mumbai: The Maharashtra cabinet has waived property tax for residential houses in Mumbai with carpet area measuring up to Rs 500 square feet. The tax waiver came into force on January 1, 2019. The proposed tax waiver was earlier promised by Shiv Sena before the end of the 2017 civic elections.

The Brihanmumbai Municipal Corporation (BMC) cleared the proposal for the tax waiver in July 2017. Later, the BMC sought clearance from the state government on the proposed tax waiver.

The cabinet meeting held on Friday was the last one conducted before the election code of conduct comes into effect. However, the state government failed to take up the proposal in the cabinet meeting conducted before the general elections.

A report by the Times of India quoted an official as saying, “The cabinet has to clear the proposal if a tax levied by any corporation is completely done away with, in case the tax limit is reduced or changed the powers are with the corporation.”

Flats measuring from 500 sq ft area to 700 sq ft area will receive relief in property tax up to 60 per cent. This relief is included in the tax proposal and does not require the state government to clear them. According to a source, the scheme will provide relief for the biger voter base which includes the residents of chawls and middle-class areas.