The ruling BJP in MCD today said residential properties in rural areas and unauthorised colonies should be exempted from house tax and demanded that the Delhi government should take immediate action to implement its proposals in this regard.

Leader of MCD House Subhash Arya demanded that the Congress-ruled Delhi government should take immediate action for implementation of pending resolutions of the BJP-ruled MCD seeking exemption from property tax for residential properties in rural areas.

The Delhi government should initiate at the earliest the legal procedure to make appropriate amendments to this effect in the DMC Act, 1957, he told reporters.

He demanded that one self-occupied residential property in urbanised villages of the original allottees and old farmers and their legal heirs should also be exempted from property tax. He said unauthorised colonies should also be kept beyond the purview of the property tax till the time they are regularised and provided basic civic amenities.

The Leader of the House felt that if self-occupied residential properties are exempted from property tax, the villagers themselves will volunteer to pay property tax on commercial, industrial and rented properties in rural areas.

He said that even at this time, the residents of the rural areas are not paying any property tax to MCD. The limit of exemption up to 100 or 200 meters is infructuous because most of the plots in rural areas are much smaller in size and are already beyond the purview of property tax.

Arya said villagers would be willing to pay property tax on such premises provided residential units are not taxed. If it is implemented, than it will enhance MCD's income by about Rs 250 crore, Arya claimed.

He said the President of India had advised Delhi government in 2006 that it might increase the limit of exemption from property tax to self-occupied 100 square-metre plots to 200 square metres.

"Delhi government has not taken any action on the advice of the President. The BJP-ruled MCD took a decision in 2008 that all self-occupied residential properties in urbanised villages should be exempted from property tax. The resolution was sent to Delhi government for onward transmission to the Central government but due to political considerations, it did not make any progress," he charged.