BBMP revises parking tax: Shopping malls set to save big

Bengaluru: The Bruhat Bengaluru Mahanagara Palike (BBMP) has revised the property tax calculation for covered and stilt parking areas in all buildings across the city, a move that could lead to significant savings for large shopping malls.

The decision has left citizens uneasy, as they fear the parking tax will be higher than what property owners currently pay, while officials claim it will be significantly lower.

In a notification issued on Saturday, BBMP Chief Commissioner Tushar Girinath proposed changes to how the unit area rate is computed for private parking slots, citing Clause 5 of Section 144 of the BBMP Act, 2020. The public can submit inputs or objections within seven days.

The revised parking tax structure will come into effect from April 1.

The notification sets a monthly rent of Rs 2 per parking slot in residential complexes and Rs 3 for similar facilities in commercial buildings. This applies uniformly across all buildings, as the BBMP has removed the zonal classification that previously determined tax rates.

Until now, parking tax varied based on six different zonal classifications. And, parking tax component was 50% of the total property tax for residential units.

For instance, apartments in Zone A paid Rs 1,875 annually, while those in Zone F paid as little as Rs 750. It was much more for commercial establishments especially shopping malls.

Changes will benefit malls, burden independent houses

BBMP sources said the modification to the parking tax structure will benefit shopping malls, as they were previously paying as much as Rs 8 per parking lot as tax. This will now be reduced to Rs 3 per slot. However, independent houses that have declared parking lots, as well as apartment units, may face an increased tax burden.

After reviewing the notification, the Bangalore Apartments Federation (BAF) expressed concerns that parking tax could rise if the changes are implemented. “We will share our objections within the stipulated time,” said a BAF governing body member.

Real estate body CREDAI Bengaluru also raised concerns that the revised tax could be higher. “By the looks of it, it will be on the higher side. We need a clarification from officials,” said an office-bearer.

BBMP: Tax will be lower

Munish Moudgil, Special Commissioner (Revenue), BBMP, insisted that the parking tax component would be lower than the current rates. “We have standardised the system, and the parking tax has been reduced substantially,” he said. He clarified that the unit area value would be considered, not the tax rate.

“It will amount to Rs 600 per year for a parking lot in an apartment complex and Rs 900 per year for one in a commercial building,” he added.