Bengaluru Introduces Betterment Tax and Stamp-Duty Cess Around Major Business Corridor

The Karnataka government has announced the introduction of a betterment tax and a 1 per cent stamp‐duty cess around the upcoming Rs 27,000-crore Bengaluru Business Corridor (BBC) project, designed to ease congestion and promote structured growth in the city.

The 117-kilometre tolled corridor will span from Tumakuru Road to Electronics City.

To help recover costs and service loans (including those from HUDCO at 9 per cent interest), the state plans a 1-kilometre “impact zone” on either side of the corridor where the levies will apply.

Within 500 metres of the corridor, the betterment tax rate will be higher, reflecting anticipated large land-value gains.

Funds collected will go into a dedicated BBC account. The scheme also includes transit-oriented development (TOD) hubs—with commercial and residential projects of 50–100 acres each, planned at major road intersections along the corridor.

The first phase involves acquiring 2,600 acres, with construction expected to begin soon.

Landowners will have five compensation options: cash, transferable development rights (TDR), floor area ratio usage, residential plot allotment or commercial land.