The Bruhat Bengaluru Mahanagara Palike (BBMP) has announced a proposal to revise the tax on parking areas in both residential and commercial buildings. A draft notification was issued on Sunday, inviting owners of such buildings to submit any objections within the next seven days.
As per the draft, parking areas of approximately 150 sqft in residential buildings will be taxed at Rs 600 per year. For non-residential or commercial buildings, the annual tax will be Rs 1,125.
BBMP Chief Commissioner Tushar Girinath explained that the decision was in response to requests from various stakeholders to reduce parking taxes, particularly in non-residential areas. Previously, parking tax in non-residential zones was based on the “Unit Area Value,” resulting in taxes that were 50% higher than those proposed under the new draft.
The previous system, based on a zonal calculation, led to discrepancies, and building owners were often paying up to 50% more in parking taxes. Under the proposed system, a more uniform and standardized tax structure will be implemented. Residential building owners, who previously paid 25% of property tax on parking spaces, will now benefit from a reduced rate.
According to the revised “Unit Area Value” rates, residential building owners will pay 20% of the parking space area (150 sqft) at Rs 2 per sqft, amounting to Rs 600 annually. Similarly, owners of commercial buildings will pay 25% of their parking area at Rs 3 per sqft, totaling Rs 1,125 annually.
BBMP revenue officials noted that the earlier tax rate of Rs 13 per sqft for non-residential buildings led to disparities, and its revision will result in a loss of about Rs 60 crore. However, the new system is expected to create long-term benefits by ensuring uniformity in tax collection.