BDA Hikes Property Tax by 20% to 45%, Sparking Public Outrage

BENGALURU: The Bangalore Development Authority (BDA) has revised property taxes for properties under its jurisdiction, increasing them by 20% to 45%. This move, affecting thousands of property owners in nine BDA-developed layouts and several BDA-approved apartment complexes, has triggered strong opposition from residents.

The tax hike comes amid rising costs across Karnataka, with recent increases in prices of essential goods and services including electricity, water, public transport, milk, and property registration fees. The latest revision is expected to impact over 1.22 lakh property owners in layouts such as Arkavathi, Banashankari, and Nadaprabhu Kempegowda.

Residents Protest 'Unscientific' Taxation

Resident welfare associations have expressed frustration over the hike, citing poor infrastructure in many BDA-developed areas. Despite years of paying property taxes, many basic amenities—such as roads, sewage systems, street lighting, and water supply—remain incomplete.

“Even after eight years of paying taxes, our layout still lacks essential infrastructure,” said Suryakiran, a resident of Nadaprabhu Kempegowda Layout. “Instead of improving services, the BDA has now imposed an unfair tax burden on us.”

Revenue vs. Reality

The BDA currently collects around ₹55–₹60 crore annually in property tax. However, it is struggling with arrears of approximately ₹40 crore. The revised tax rates—published on the BDA website on April 28—are now being calculated based on the property’s guideline value as of April 1, 2025.

Property tax is typically determined based on the location, area, and condition of the property. However, many residents argue that the BDA’s tax model does not reflect the actual state of infrastructure, labeling the hike as arbitrary and “unscientific.”

Delayed Projects Add to Frustration

Residents have pointed out that skyrocketing building material costs and unfinished infrastructure projects are making home construction increasingly unaffordable. Some have even stated that renting a home would be less burdensome than owning one under the current circumstances.

Purpose of Property Tax Questioned

While property tax is intended to fund community services and infrastructure development, many residents question its effectiveness. “We’ve paid taxes for years, but haven’t seen any significant improvements,” one resident said.

As dissatisfaction mounts, residents are urging the BDA and state government to prioritize completing infrastructure projects before imposing further financial burdens on homeowners.