New Delhi: The Bruhat Bengaluru Mahanagara Palike (BBMP) has revised the property tax calculation for covered and stilt parking areas across all buildings in the city. This change can result in notable savings for large shopping malls while increasing the tax burden for owners of separate houses and apartments. The decision has raised concerns among the public, who fear that the new parking tax rates might be higher than the current ones. However, officials claim that the revised scheme will lead to a reduction in overall tax liability.
In a notification issued, BBMP Chief Commissioner Tushar Girinath has proposed changes to how the Unit Area Value (UAV) can be calculated for private parking slots. This revision is based upon Clause 5 of Section 144 of the BBMP Act, 2020.
As per the notification, a monthly UAV of Rs 2 per parking slot in residential complexes and Rs 3 per slot in commercial buildings, reducing the previous zonal category that applied different tax rates across six zones.
According to the previous regime, parking tax accounted for 50 per cent of the total property tax for residential units, and the rates varied greatly depending on the zoning classifications. For example, apartments in Zone A paid Rs 1,875 annually, whereas those in Zone F paid only Rs 750. Commercial buildings, particularly shopping malls, faced much higher taxes.
As per some officials from the BBMP, the upcoming changes will aid shopping malls, which previously paid up to Rs 8 per parking slot but will now pay only Rs 3 per slot. However, independent homeowners and residents of apartments who have proclaimed their parking spaces will see a boost in their tax obligations.
