Karnataka Proposes Property Tax Cuts for Vacant Plots Turned Parking Lots
Karnataka's draft parking rules for Bengaluru propose tax exemptions for vacant plots used as parking, fee-based street parking, and restrictions on key roads.
The Karnataka government has unveiled a draft set of parking regulations for the Greater Bengaluru area, proposing a mix of incentives and restrictions to tackle the city's chronic traffic congestion.
A key feature of the draft rules is a 100% property tax exemption for vacant plots converted into multi-level or mechanised car parking facilities. Plots used for surface-level parking would receive a 50% exemption.
The proposals also introduce a scientific, fee-based on-street parking system, with charges varying by road type and location. Parking may be banned entirely on major high-traffic corridors and restricted during peak hours to keep vehicles moving. Roads near major public transport hubs could see parking limits to push commuters toward designated parking areas.
To discourage long-term street parking, higher fees are proposed for extended stays. Regular users of public off-street facilities may be offered monthly passes. Authorities would also gain powers to act against buildings that fail to provide mandatory parking or misuse designated parking spaces.
Revenue from parking is earmarked for traffic and junction improvements, as well as road and footpath repairs.
The government notes that Bengaluru has over 1.28 crore registered vehicles, with an additional 15-20 lakh vehicles registered elsewhere but operating in the city. It argues that regulating parking is essential to improve traffic flow and pedestrian access.
The draft rules, based on Karnataka's 2021 Bengaluru Parking Policy, were framed after consultations with agencies including the Bangalore Development Authority, BMRCL, BMTC, and K-RIDE. They were published for public feedback on August 10, with suggestions accepted until September 10, 2026, before finalisation.