MUMBAI: The Maharashtra cabinet on Wednesday approved the state government's decision to waive property tax on houses upto 500 sq ft in Mumbai.
Chief Minister Uddhav Thackeray had announced the decision on the New Year's day.
It will benefit 16.14 lakh residential units, the Chief Minister's Office said in a statement.
The waiver will result in a revenue loss of Rs 462 crore for the exchequer.
The Mumbai municipal corporation will bear a loss of Rs 417 crore while the state government will bear the burden for the remaining Rs 45 crore deficit, officials said.
The cabinet on Wednesday also decided to waive the tax on school buses for the period between April 2020 -- the start of the coronavirus pandemic -- to March 31, 2022.
Vehicles owned or hired on contract by schools and used only for transporting school children will be eligible for the concession, the CMO statement said.
The tax already paid would be adjusted in future dues.