BBMP Announces Relief for Bengaluru Homebuyers, Proposes Cut In Residential Parking Tax
BBMP Announces Relief for Bengaluru Homebuyers, Proposes Cut In Residential Parking Tax
In a move that brings welcome relief to homeowners, the Bruhat Bengaluru Mahanagara Palike (BBMP) has proposed a reduction in parking tax for residential properties following strong public feedback. The municipal body stated that the draft proposal—yet to be officially implemented—will be reviewed for further concessions.
The revised tax plan is part of BBMP’s effort to streamline and rationalize the city’s parking taxation system, which previously followed zonal classifications leading to uneven charges. The updated model, based on Unit Area Value (UAV) rates, initially proposed a levy of ₹2 per sq ft on 20% of residential parking areas for 10 months, amounting to around ₹600 per month for an average 150-sq-ft space.
For commercial properties, the tax was pegged at 25% of the parking area at similar rates, translating to an estimated ₹1,125 per year. BBMP clarified that this isn’t a new tax, but a revision aimed at creating a more uniform taxation framework.
“In the 2024–25 financial year, BBMP collected ₹211 crore from property taxes, of which ₹40 crore was attributed to parking spaces. Under the draft UAV system, we were already facing losses. Hence, the revision is aimed at both reduction and rationalization,” BBMP noted in an official statement issued on April 14.
The proposed rates sparked concern among citizens, with many raising fears over added financial stress. This led BBMP to reconsider and potentially reduce the tax further based on resident feedback.
Real estate analysts, however, caution that the new system may still lead to increased tax liabilities for some homeowners. They also stressed the need for BBMP to tackle roadside parking challenges, which remain largely unregulated. “The civic body must address whether roadside parking is to be considered illegal or taxed separately,” said Anil Kalgi, Secretary of the Bangalore City Flat Owners’ Association (BCFOA).
As implementation details emerge, experts advise homeowners to stay updated on tax notifications, evaluate their liabilities, and explore options for appeals or exemptions where applicable.
