BENGALURU: Bruhat Bengaluru Mahanagara Palike (BBMP) has proposed to revise the tax on parking areas in residential and commercial buildings. The palike issued a draft notification on Sunday, inviting objections, if any, within seven days from owners of residential and commercial buildings.
According to the notification, for parking areas of around 150 sqft in residential buildings, the owners have to pay Rs 600 per year, and for non-residential buildings, Rs 1,125 per year.
BBMP Chief Commissioner Tushar Girinath said this decision was taken as there were requests from several quarters for reduction of tax on parking areas based on ‘Unit Area Value’, especially in non-residential areas.
“The tax based on Unit Area Value in non-residential areas was 50% and the owners were paying more. Now under the new draft, tax rates will be reduced,” said Girinath.
An official said, the tax rates for parking areas earlier were based on zonal calculation. This resulted in disparity and ended up in payment of nearly 50% of taxes on parking areas. Hence, BBMP proposed a uniform and standardised system. Owners of residential buildings paid 25% along with property tax and the proposed move would benefit owners.
It’ll help BBMP, building owners, says official
As per the new ‘Unit Area Value’ rates, the owners of residential buildings will have to pay 20% of parking areas (150sqft) at Rs 2 per sqft rate for 10 months, which comes to Rs 600 per year.
Similarly, commercial and non-residential building owners will have to pay 25% of parking areas at Rs 3 per sqft for 10 months, which will be Rs 1,125 per year, Munish Moudgil, special commissioner (Revenue), BBMP, stated in a press release.
BBMP revenue officials said the palike had to bring in a uniform and standardise tax system on parking areas as the earlier rate of Rs 13 per sqft for non-residential buildings had to be revised. “This would result in a loss of about Rs 60 crore, but ensures uniformity. In the long run, this will help palike as well as building owners,” an official said.