Bengaluru residents face hiked garbage tax, new parking cess — What are the changes?

Bengaluru residents are set to feel the pinch after the municipal corporation introduced taxes pertaining to garbage disposal and parking spaces. The solid waste management user fee went into effect from April 1 while the parking cess remains under consideration — with residents asked to file objections before April 8.

Parking tax

The BBMP recently unveiled a new property tax calculation method for covered and stilt parking areas within buildings across the city in a bid to bring uniformity and ease the financial burden on property owners. Residential property owners will now pay Rs 600 per year for a standard 140 sqft parking space — calculated at 20% of the accessed value at Rs 2 per sqft for 10 months. Non-residential buildings will be charged 25% of the parking area at a rate of Rs 3 per sqft for 10 months.

The previous rules had seen property owners charged on the basis of a zonal classification with parking tax forming about 50% of the overall property tax in many residential units. While the uniform method simplifies the system it could also hike tax rates for some flat owners.

According to reports, the BBMP will see its revenue dip by Rs 40 crore when the revision comes into effect.

‘Garbage Tax’

A solid waste management user fee was also introduced from April 1 in order to improve waste collection and disposal services across the city. Reports suggest that the new levy will generate an additional revenue of Rs 750 crore annually for the BBMP. The fee will be levied on the basis of the built-up area with independent residential properties paying a monthly cess between Rs 10 (for up to 600 sqft) and Rs 400 (for homes above 4,000 sq ft). Meanwhile bulk waste generators who do not avail an authorised waste processing agency service will be charged Rs 12 per kilogram while those opting for in-situ composting will be eligible for a discount of Rs 3 per kg.

Later report however indicate that the new ‘garbage tax’ is currently under review following outrage over the tax formula. Activists insist that the dues should be collected on the basis of garbage generated per capita rather than the size of residences.