Under the new rates, property tax for parking spaces is calculated at ₹2 and ₹3 per square foot for residential and commercial properties respectively. BBMP Special Commissioner Munish Moudgil stressed that the decision is aimed at encouraging the creation of more parking spaces in the city.
Published Apr 02, 2025 | 12:15 AM ⚊ Updated Apr 02, 2025 | 12:15 AM
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Synopsis: The Bruhat Bengaluru Mahanagara Palike has proposed lower, standardised property tax rates on parking spaces, which could cost the civic body ₹50 crore a year. A draft notification issued on 29 March outlines the revised rates, aimed at encouraging more parking in residential and commercial buildings.
The Bruhat Bengaluru Mahanagara Palike (BBMP) is expected to lose around ₹50 crore in annual revenue following a decision to reduce property tax rates on parking spaces across residential and commercial buildings.
In a draft notification issued on 29 March, the civic body announced revised Unit Area Value (UAV) rates for parking spaces under Clause 5 of Section 144 of the BBMP Act, 2020. The move aims to standardise and lower tax rates, and the public has been invited to submit objections within one week.
“Property tax in parking area is not new, it has always been there since 2008 and even before,” said Munish Moudgil, BBMP Special Commissioner, Revenue Department.
“In fact, the present notification is reducing the rate of Unit Area Value and aimed to reduce tax burden for parking slots. So it is a pro-citizen action. BBMP is actually going to lose money compared to what it was getting before reduction of property tax UAV rates. BBMP will lose approximately ₹50 crore per year.”
Moudgil stressed that the decision is aimed at encouraging more parking slots in the city.
Under the new rates, parking tax for residential properties is calculated at ₹2 per square foot. For a 150 square foot space, the annual tax will be ₹600, calculated as 20 percent of the value of 10 months’ rent at the given rate.
For commercial and non-residential properties, the rate is set at ₹3 per square foot. A 150 square foot space would attract an annual tax of ₹1,125, based on 25 percent of the value of 10 months’ rent.
“The commercial establishments whether malls or theatres, hotels, supermarkets paid ₹8 to ₹10 per square foot for parking spaces. However, now the BBMP has slashed it down to as low as ₹3 per square foot,” Moudgil added.
BBMP Chief Commissioner Tushar Girinath said the decision followed appeals for tax reductions on parking areas, especially in non-residential zones.
“The tax based on Unit Area Value on non-residential was 50 percent and they were paying more and now under the new draft, the tax rates will be reduced,” said Girinath.
He added that the Revenue Commissioner has provided calculations and the draft notification has been released accordingly.
R Rajagopalan, Founder of the Bengaluru Coalition, a residents’ welfare association expressed concerns over the changes for commercial buildings.
“The tax on parking slots was always included in the property tax. Especially from the time when Self Assessment Scheme (SAS) was implemented. We have paid that earlier and it would reflect in the property tax receipts in the calculation section, not in the total receipt,” he said.
“The Revenue Commissioner has mentioned the term ‘normalisation’ which means they have standardised it across different zones in Bengaluru. However, I disagree with the changes that BBMP has brought for commercial buildings/owners.”
He continued: “They have to make them pay the premium amount as it was earlier rather than reducing it to as low as ₹3.”
BBMP has so far collected ₹4,566 crore in property tax this year from residential and commercial buildings. In its recent budget, the civic body set a target of ₹6,000 crore.
(Edited by Dese Gowda)
