Bengaluru real estate: BBMP to cut parking tax for residential properties, bringing relief to homeowners
Bengaluru real estate: BBMP said as per citizen feedback, the parking tax for residential properties will be examined for further reduction by the government
In response to residents' backlash, Bengaluru's municipal body, Bruhat Bengaluru Mahanagara Palike (BBMP), has announced a reduction in parking tax rates for residential properties. The civic body aimed to standardize and simplify the taxation system for parking spaces across the city.
"The proposal was notified as a draft and has not yet been implemented. However, as per citizen feedback, the parking tax for residential properties will be examined for further reduction by the government," the municipal body said in a statement on April 14.
Previously, parking taxes were calculated based on zonal classifications, leading to disparities and higher charges for certain areas. Under the revised Unit Area Value (UAV) rates, the draft notification initially suggested that residential building owners would be charged 20% of the parking area at ₹2 per sq ft for 10 months, totalling ₹600 per month. The UAV will be charged 25% of the parking space area for non-residential areas for 10 months.
A standard 150-square-foot parking area translates to an annual tax of ₹600 for residential properties and ₹1,125 for commercial ones. BBMP clarified that this is not a new tax but a revision to create a uniform and fair taxation system.
"BBMP, even under the already-notified draft UAV rates, was already losing about ₹40 Crores out of ₹211 Crores of property tax it collected last year (2024-25) from parking areas. Hence, BBMP has aimed to reduce and rationalise parking tax," the municipal body said.
The decision comes after residents expressed concerns over the proposed tax hike, fearing increased financial burdens. Real estate experts warn that Bengaluru’s revised parking tax structure may lead to higher tax liabilities for homeowners, as HT.com reported.
With property tax being a significant recurring expense, many residents are now evaluating the impact of the new rates on their annual tax obligations. As implementation begins, experts say homeowners are urged to review their property tax assessments and stay informed about potential appeals or rebates.
Experts emphasized that the BBMP should also focus on roadside parking, which is a widespread issue in Bengaluru. "Whether roadside parking is illegal or should be taxed has yet to be addressed by the BBMP," Anil Kalgi, Secretary of the Bangalore City Flat Owners’ Association (BCFOA), added.
