Bengaluru’s new garbage tax, introduced from 1 April and collected alongside property tax, has generated substantial revenue in a short span.
The Bruhat Bengaluru Mahanagara Palike (BBMP) has collected ₹350 crore from the garbage tax in the first 2 months of the 2025 financial year. This amount is nearly half of the annual revenue target of ₹700 crore. The solid waste management (SWM) fee is collected on behalf of Bengaluru Solid Waste Management Ltd (BSWML) alongside the property tax.
In May alone, the garbage tax collection reached ₹230 crore. Combined property tax revenue for April and May was ₹2,600 crore, an increase of ₹1,250 crore compared to the same period last year. According to a BBMP official, approximately ₹350 crore of the total revenue came from the SWM fee, as reported by Deccan Herald.
The increased revenue has enabled BSWML to plan several improvements in waste collection and processing infrastructure. These plans include overhauling the waste collection and transportation system by deploying new auto tippers for door-to-door garbage pickup.
A single private agency is expected to be appointed to manage wet, dry and sanitary waste across major assembly segments under a contract estimated at ₹540 crore per year. The agency aims to streamline waste management for efficiency and effectiveness.
BSWML has proposed the establishment of four integrated solid waste processing facilities across Bengaluru. These projects have received cabinet approval, though financial details are still awaited. In addition, the management of construction and demolition waste is also set for better organisation.
Concerns have arisen over the awarding of all five related tenders to a single firm. The introduction of a ₹100 crore outlay for tipping fees represents a new expenditure category, attracting scrutiny.
The SWM fee is calculated based on the built-up area of residential properties. Monthly charges start from ₹10 for homes under 600 square feet and increase up to ₹400 for properties larger than 4,000 square feet. This fee structure was reported by Hindustan Times.
Read More: IEX Share Price Dips on June 12 After 10% Fall a Day Earlier!
Bengaluru’s garbage tax has quickly generated ₹350 crore in two months, contributing to a significant rise in property tax revenue. The additional funds are set to support major upgrades in waste management infrastructure and services. However, the new tax has sparked public debate and political opposition regarding its implementation and transparency.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 12, 2025, 1:08 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates