Up to 35% tax hike looms as BBMP introduces garbage fee

Bengaluru: More than 42 lakh households and businesses in Bengaluru are feeling the pinch as property taxes have increased by 20–35%.

This increase follows the Bruhat Bengaluru Mahanagara Palike (BBMP) rolling out a new 'garbage tax', which took effect on April 1. The tax portal was opened for public access late on Saturday.

The garbage tax — officially known as the Solid Waste Management (SWM) user fee — covers services such as the collection, transportation, processing, and disposal of garbage. It is expected to generate Rs 750 crore annually for the BBMP.

In addition to independent houses and commercial establishments, the garbage tax also applies to vacant plots. Owners of such plots are required to pay Rs 0.60 per square foot, even if they do not use the BBMP’s services.

Residents of large apartment complexes have also been charged, even if their buildings employ private waste collectors or operate onsite waste processing or composting units.

Srivatsa V, a resident of Hosakerehalli, said his property tax had increased by 37%. "I paid Rs 3,275 last year. On top of the SWM cess of Rs 360, the BBMP has charged Rs 1,200 as the SWM user fee. This brings the total to Rs 4,475 — a steep hike for a house with just a ground floor,” he said.

A family of four living in Basavanagudi will now pay Rs 1,200 annually as garbage tax. “I paid Rs 3,900 last year. Now, the total tax comes to Rs 5,100. While the increase may seem nominal, it will strain my finances as the prices of essential items have also risen. On top of this, I have EMIs to pay,” said Latha Kumari.

Raghavendra Rao, a resident of RR Nagar, said he didn’t mind paying the additional Rs 1,200 as garbage tax, provided the BBMP uses the funds to keep the city clean. “My property tax has increased by 25% to Rs 6,111,” he said.

Bulk waste generators who have their own SWM facilities are demanding exemption from the user fee.

Subhash Shetty, a resident of Nagasandra, said his apartment complex has 877 flats. “We have an onsite wet waste-processing facility. We also pay Rs 60,000 a month to a private vendor for dry waste collection, and sanitary waste is handed over to an authorised vendor for payment on a per-kilogram basis. Despite all this, the BBMP has charged an SWM user fee for every flat. My property tax has increased by 25% due to the new garbage tax,” he said. “This feels like daylight robbery.”

Harish Kumar, Chief Executive Officer (CEO) of Bengaluru Solid Waste Management Ltd, said the SWM user fee for individual houses was approved by the government, as the bylaw prescribes higher charges.

“Bulk waste generators, such as large apartments with their own SWM facilities, will be exempted from paying the user fee, provided they declare it on the tax portal. This will be subject to verification,” he said.

All apartment complexes, large and small, pay monthly maintenance charges that include garbage disposal. Smaller apartments often give their waste to the BBMP auto tippers, who charge an unofficial fee ranging from Rs 3,000 to Rs 10,000 per month, depending on the number of units. The new garbage tax is expected to disrupt such informal arrangements.