Mumbai, Jan 1 (IANS): Fulfilling an election promise, Maharashtra Chief Minister Uddhav Thackeray on Saturday announced a complete waiver of property tax on residential properties in Mumbai measuring up to 500 sq ft in the New Year.

The decision will prove a boon for lakhs of middle and lower-middle class property holders, and comes at a critical stage ahead of the upcoming elections to BrihanMumbai Municipal Corporation (BMC).

The Shiv Sena, headed by Thackeray, has been ruling the roost in BMC, the country's biggest and richest civic body, for over a quarter of a century now.

"We had made this promise before the 2017 civic elections and now we are honouring it. The decision shall be implemented with immediate effect," Thackeray said after a meeting with the Urban Development Department.

Presently, there are more than 16 lakh homes in Mumbai, which are up to or less than 500 sq ft area and the Maha Vikas Aghadi (MVA) largesse would significantly benefit them.

On the flip side, the BMC is likely to forfeit a revenue of around Rs 450 crore by the waiver, but it is expected to have several other advantages as the recent activities in the realty markets indicate.

The CM assured that the Shiv Sena and the MVA are committed to give a fillip to Mumbai's development and it's now the fourth generation of Thackerays who are working to take it to new heights.

"I appeal to Mumbaikars to support us as the Shiv Sena and MVA are fully capable of taking care of everything, especially the efforts to tackle the ongoing Covid-19 health crises," said Thackeray.

Saturday's meeting was attended by Urban Development Minister Eknath Shinde (Sena), Ports Minister Aslam Shaikh (Congress), who is also Guardian Minister for Mumbai City, Tourism Minister Aditya Thackeray, who is the Guardian Minister for Mumbai Suburbs, Chief Secretary Debasish Chakrabarty, Mayor Kishori Pednekar, BMC Commissioner I.S. Chahal and others.