Bengaluru’s real estate sector is undergoing a financial shift as the Bruhat Bengaluru Mahanagara Palike (BBMP) announced significant progress in property tax collections for the fiscal year 2024–25. The civic body collected a substantial ₹4,930 crore, a sharp increase from ₹3,918 crore recorded in FY24. While BBMP had set an ambitious target of ₹5,210 crore, it successfully achieved 94.6% of this goal. The strong performance is a testament to the city's evolving approach to urban tax governance and enforcement strategies. Mahadevapura and Yelahanka Lead the Revenue Surge Among BBMP’s various zones, Mahadevapura contributed the most, with ₹1,310 crore in property taxes, slightly surpassing its assigned target of ₹1,309 crore. Yelahanka, on the other hand, stood out as the best-performing zone in percentage terms, achieving 104% of its target by collecting ₹464.66 crore against a goal of ₹445.24 crore. Other zones followed closely: Bengaluru East collected ₹834 crore, slightly below its ₹891 crore target Bengaluru South contributed ₹733 crore against a target of ₹769 crore These contributions highlight both compliance improvements and BBMP’s growing efficiency in tax administration Strategic Measures Behind the Collection Boost The significant rise in property tax revenue is not coincidental. According to Munish Moudgil, Special Commissioner (Revenue), BBMP, several key initiatives were instrumental in achieving this milestone: Implementation of a One-Time Settlement (OTS) Scheme to encourage overdue payments Property auctions targeting long-term defaulters Enhanced digital tracking and revenue monitoring These measures not only streamlined the collection process but also sent a strong message about enforcement and accountability. Parking Tax for Residential Properties Under Review Amid concerns raised by citizens, BBMP announced that it is reconsidering its draft proposal to impose a parking tax on residential properties. The civic body acknowledged public feedback and stated that the final decision is still under review. As per the initial draft, residential building owners would be charged ₹2 per sq ft on 20% of the parking space for 10 months, equating to ₹600 per month. In contrast, non-residential properties would be taxed on 25% of their parking space under the Unit Area Value (UAV) system. Previously, zonal classifications had led to wide disparities in parking-related charges. BBMP emphasized that any future changes will aim for uniformity and fairness across the city. FY26 Vision: Aiming for ₹6,000 Crore Looking ahead to FY26, BBMP has set a more ambitious goal — crossing ₹6,000 crore in property tax collections. With improved tax systems, consistent public engagement, and stricter enforcement policies, the civic body is optimistic about reaching this milestone. This progression reflects a broader transformation in Bengaluru’s urban fiscal management, supported by growing transparency and policy responsiveness.