Revision in parking policy to reduce revenue of BBMP by ₹40 crore in Bengaluru

The civic body has issued a draft notification standardising and reducing the tax rate for vehicle parking space under the new Unit Area Value (UAV) system to rationalise property tax calculation for parking. 

The Bruhat Bengaluru Mahanagara Palike (BBMP) is set to witness a decline in its annual parking revenue, which is expected to drop from ₹211 crore to ₹171 crore, if revision in the Unit Area Value (UAV), is implemented. Citizens have been asked to file objections before April 8. 

BBMP Chief Commissioner Tushar Giri Nath said the civic body will take a final call on implementing the revised parking policy after hearing the objections from citizens. 

Mr. Giri Nath said to rationalise property tax calculation for parking, the civic body has issued a draft notification standardising and reducing the tax rate for vehicle parking space under the new UAV system. 

According to the new rates, residential property owners will now pay ₹600 per year for a 150 sq. ft. parking slot, calculated at 20% of the assessed value at ₹2 per sq. ft. for 10 months. The revised tax structure, applicable to both residential and commercial properties in Bengaluru, aims to bring uniformity and ease the financial burden on property owners, said a BBMP official.

Mr. Giri Nath said the revenue generation of the BBMP will dip to ₹171 crore from ₹211 crore. The revenue fall from residential properties will be about ₹38 crore and from non-residential properties would be ₹2 crore. He said the draft has proposed to do away with zonal classification to bring uniformity and reduce the burden among property owners.