The Bruhat Bengaluru Mahanagara Palike (BBMP), in a move that could relieve a lot of homeowners, has proposed to reduce the parking tax for residential properties. The move follows widespread public outrage and concerns over the financial burden on residents.
The BBMP clarified in a statement issued on April 14 that the changes are part of a draft proposal and haven’t yet been implemented. “We’ve received valuable feedback from citizens, and the parking tax for residential properties is currently under review for further reduction,” the civic body said.
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Overview of the Proposed Tax
In Bengaluru, the earlier dedicated parking taxes were determined by zonal classifications, which resulted in great disparity— some zones paid much more than others. The BBMP introduced a new model with Unit Area Value (UAV) rates that address the disparity in parking taxes and provide constancy and fairness.
Under the draft proposal of the parking tax, owners of residential buildings would pay a tax on 20% of their parking space at a rate of ₹2 per square foot (through 10 months of the year), thereby meaning that a standard parking space of 150 square feet would cost homeowners around ₹600 per year. For commercial properties, the tax would be calculated on 25% of the parking space, translating to ₹1,125 per year.
The BBMP emphasized that this isn’t a new tax but rather a revision to create consistency in the taxation of parking spaces across the city.
Impact on BBMP Revenue
Interestingly, despite the adjustments, BBMP revealed it has already seen a dip in collections under the current draft structure. “From the ₹211 crore collected in property tax last year (2024-25), BBMP incurred a loss of around ₹40 crore from parking areas alone,” the statement noted. This revenue impact has also motivated the civic organization to further simplify and clarify the tax structure.
Local Concerns and Expert Input
The first proposal caused concerns due to the original proposal, and many residents were concerned about annual tax bills increasing. Some real estate analysts believe that if used incorrectly, the result seems to leave homeowners with a higher tax burden.
Given the recurring nature of property taxes, homeowners are being advised to review their assessments and stay informed about possible appeals or rebate options once the new system is finalized.
Also Read: Bengaluru Real Estate: Are Rising Costs and Fading NRI Investments a Warning?
Roadside Parking: An Unresolved Issue
While the focus has been on parking spaces within residential and commercial buildings, experts say there’s another pressing issue that remains unaddressed—roadside parking. “There’s still no clarity from BBMP on whether roadside parking is legal or if it should be taxed,” said Anil Kalgi, Secretary of the Bangalore City Flat Owners’ Association (BCFOA). He urged the civic body to consider a more holistic approach.
As the draft awaits approval and possible revisions, residents are keeping a close eye on developments, hoping for a fair and practical outcome.
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Ans 1. The BBMP has proposed a revised parking tax system where residential property owners would be taxed based on 20% of their parking area at ₹2 per sq ft for 10 months.
Ans 2. No, BBMP clarified that this is not a new tax. It's a revision aimed at making parking taxation more uniform and fair across Bengaluru.
Ans 3. For a standard 150 sq ft parking space, homeowners would pay around ₹600 annually under the proposed rates.
Ans 4. Yes, commercial properties would be taxed on 25% of their parking space, leading to an annual parking tax of about ₹1,125 for a 150 sq ft area.
Ans 5. The decision came after public backlash over the initial draft rates, with many residents expressing concerns about increased financial burden.