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Bengaluru's proposed changes in parking tax system may lead to higher tax liabilities for homeowners, say experts
Bengaluru's new parking tax system, based on a uniform rate per sq ft, replaces zonal classification method. Experts say it may increase homeowners' tax burden
Bengaluru’s municipal body, Bruhat Bengaluru Mahanagara Palike (BBMP), has a new property tax calculation method for covered and stilt parking areas in buildings across the IT capital. While it is expected to benefit shopping malls, it may increase the tax burden on homeowners, say experts.
Under the revised Unit Area Value (UAV) rates, residential building owners will be charged 20% of the parking area at ₹2 per sq ft for 10 months, totalling ₹600 per month. For non-residential areas, the UAV will be charged 25% of the parking space area for 10 months.
Previously, parking tax made up 50% of the total property tax for residential units and varied based on zonal classification (for example, A, B or C). This uniform taxation model applies to all buildings, ensuring a more structured and predictable tax framework for property owners, BBMP officials said.
How the numbers stack up
If home and apartment owners who have declared parking lots in Zone A, paid ₹1875 annually, and Zone F paid ₹750, they would now have to pay a standardized amount for a 150 sq ft parking area (required size as per BBMP bylaws) of ₹600 monthly (20% of ₹2 × 10 months × 150 sq ft).
New parking tax may lead to higher liabilities for homeowners: Experts
Real estate experts warn that Bengaluru’s revised parking tax structure may lead to higher tax liabilities for homeowners. The new tax system, introduced under the UAV method, calculates parking charges based on a standardized rate per square foot, replacing the earlier zonal classification system.
While the revised rates may provide relief to commercial establishments like malls, residential property owners could see an increase in their overall property tax burden. Experts argue that this change, combined with rising property values and frequent tax revisions, could further strain homeowners' finances.
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, homeowners are urged to review their property tax assessments and stay informed about potential appeals or rebates, said experts.
Also Read: No need to visit BBMP offices: Homeowners can now receive final e-khata within 48 hours of submitting the application
"This move is completely unconstitutional and requires close scrutiny. When purchasing an apartment, the super built-up area already includes corridors, parking spaces, lobbies, and other common areas, for which property tax has already been paid. However, with this revision, many homeowners may end up paying higher taxes," said Anil Kalgi, Secretary of the Bangalore City Flat Owners’ Association (BCFOA).
Experts emphasize 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," added Anil Kalgi.
