Karnataka Unveils Draft Bengaluru Parking Rules With Tax Breaks For Vacant Plots

The Karnataka government has proposed comprehensive parking rules for the Greater Bengaluru Authority, offering property tax waivers for vacant sites converted into parking spaces, scientifically structured tariffs for street parking, and stricter penalties for non-compliant buildings. Framed under the Bengaluru Parking Policy approved in 2021, the draft rules have been placed in the public domain for feedback until September 10, 2026.

The regulatory push comes as Bengaluru handles an estimated 1.5 crore vehicles, including more than 1.28 crore registered locally and 15 to 20 lakh registered outside the city. The government noted that vehicles remain parked at homes, workplaces, or other locations for roughly 95% of the time. With Bengaluru's low road density and narrow street network, parked vehicles occupy space intended for traffic movement and can consume up to half of a road's carrying capacity.

To expand off-street parking capacity, the draft framework provides financial incentives for private landowners. Owners of vacant sites who develop multi-level car parking or mechanised parking facilities will receive a 100% exemption from property tax and service charges. Landowners who open vacant plots for standard surface parking will be eligible for a 50% property tax exemption.

The rules also introduce a fee-based system where parking tariffs are set according to road classifications and the nature of the location. These rates will be structured so that public transit remains more economical than private vehicle trips, while monthly passes will be offered to regular users of public off-street facilities. On-street parking will be barred entirely on heavily congested arterial routes, peak-hour bans may be enforced on major roads, and street parking will be restricted near designated transit hubs and multi-level parking structures.

Enforcement will be tightened against property owners who fail to provide mandatory parking required under building regulations or who convert approved parking spaces to commercial and other uses. The government stated that parking shortfalls, excess construction, and development along narrow roads have heavily aggravated traffic congestion across the city.

The draft rules follow a March 19, 2026 meeting chaired by the then Deputy Chief Minister and current Chief Minister alongside Bengaluru's elected representatives. Earlier in 2022, Area Parking Plans were prepared by DULT, BBMP, RTO, and the Traffic Police, but tenders issued by the erstwhile BBMP for a Smart Parking Management System saw limited response because formal management rules were absent.

The new framework was formulated in consultation with GBA, DULT, DTCP, BDA, BMRCL, BMTC, and K-RIDE. Parking revenues will be published periodically and used for junction improvements, traffic management, and repairing roads and footpaths. Citizens can submit suggestions by emailing [email protected] or by writing to the Additional Chief Secretary of the Urban Development Department at Vikasa Soudha in Bengaluru.