A new policy has been decided regarding the tax reform of parking areas. This was decided during Ahmedabad Municipal Corporation’s (AMC)  revenue committee meeting. 

As per the new policy, the property tax will be levied upon only at  the facilities of ‘pay and park’. No property tax would apply to the places that do not collect parking charges.

In cities like Ahmedabad, where there is an increasing number of vehicles and shrinking spaces to park the vehicles, this move may prompt people to provide free parking at building complexes.

The revenue committee chairman, Jainik Vakil, said, “This reform will yield several benefits. Residential areas with makeshift parking structures will no longer be subjected to separate tax assessments. Similarly, commercial properties offering parking services on a daily, weekly, monthly, or yearly basis will be included in property tax assessments.” 

 What are the provisions in the new policy?

1. Makeshift sheds constructed for parking vehicles in residences will not be assessed separately for property tax.

2. Commercial properties offering parking services on a daily, weekly, monthly, or yearly basis will be included in property tax assessments.

3. Any covered or uncovered free parking arrangement in the basement or open space of any property other than commercial paid parking shall not be assessed.

4. The reform will restrict any illegal construction made for parking and will be demolished by the concerned department.

5. Malls, cinemas, and commercial buildings that charge parking fees will now be liable for property taxes.

6. If any activity of collecting charges after availing of free parking is recorded, penal action will be taken along with a levy of tax.

7. The building that provides free parking will enjoy certain incentives.

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