Curation Team
BENGALURU: Bruhat Bengaluru Mahanagara Palike (BBMP) has proposed a significant reduction and standardisation in property tax rates (unit area value) for parking areas. The civic body clarified that contrary to certain media reports, this is not a new tax but a rationalisation of an existing levy that has been in place for decades.
Since 2008, property owners in the city have paid property tax on areas earmarked for parking. The applicable rate was historically pegged at 50% of the UAV of the main property. This translated to a parking area tax as high as Rs 12.5 per sqft for commercial properties, with an average of Rs 7 per sqft for commercial spaces and Rs 2.1 per sqft for residential areas.
To promote the development of parking infrastructure and simplify the tax system, BBMP has proposed a flat rate — Rs 3 per sqft for commercial and other non-residential properties, and Rs 2 per sqft for residential properties. These revised rates are part of a draft notification and haven’t yet been implemented.
BBMP chief commissioner Tushar Giri Nath said the draft was issued with the intention of reducing the financial burden on citizens and encouraging the creation of parking spaces. “Unfortunately, parts of the media misrepresented this as the introduction of a new tax, which is completely inaccurate. This is a reduction and rationalisation measure,” he clarified.
The civic body urged citizens to ignore rumours and instead take advantage of the proposed reduction, which seeks to simplify taxation while promoting better urban planning. In fact, based on citizen feedback, the govt is also considering a further reduction in residential parking tax rates. With the proposed changes, BBMP is projected to see a revenue shortfall of about Rs 40 crore from the Rs 211 crore collected from parking-related property tax in the financial year 2024-25.
