BBMP clarifies: No new tax on vehicle parking, only adjustment in existing property tax rates

Amid growing concerns about parking issues in the city, BBMP has issued a clarification regarding recent reports of a new parking tax. With over 70 lakh vehicles in Bengaluru, improper parking on narrow streets has worsened traffic congestion.

Rumors had surfaced that BBMP would levy additional charges on vehicle parking, which has now been clarified by BBMP Chief Commissioner Tushar Giri Nath. He stated that there is no new tax being imposed.

Instead, the BBMP intends to rationalize and reduce the Unit Area Value (UAV) for parking spaces to encourage property owners to officially declare and create designated parking areas.

This move aims to regularize parking usage without increasing financial burden on citizens. Since 2008, a portion of property tax already covered parking areas.

Currently, UAV for parking spaces is around Rs 12.50 per sq. ft for commercial properties, Rs 7 for general commercial, and Rs 2.1 for residential spaces.

BBMP now proposes reducing these to Rs 3 and Rs 2 respectively for non-residential and residential properties. The proposal is still in draft form and open to public feedback.

Based on citizens’ responses, the government may consider further reductions in residential parking taxes. The BBMP also revealed that due to the lowered UAV rates, it stands to lose around Rs 40 crore from the Rs 211 crore collected in 2024-25. Citizens are urged to ignore misleading reports and instead benefit from the revised, rationalized rates aimed at easing tax burdens and improving parking infrastructure.