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The Karnataka cabinet has approved a 1% fire cess on the property tax of all newly constructed multi-storeyed buildings. This includes residential apartments, commercial complexes, hospitals, schools, and industrial units. The collected amount will be used exclusively to upgrade and expand fire and emergency services in urban areas. The cess is part of an amendment to the Karnataka Fire Force Act, 1964, and applies to all high-rise buildings above 21 metres in height.
Karnataka has introduced a 1% fire cess on property tax for newly built multi-storeyed buildings, aiming to improve fire safety and emergency response infrastructure across the state. The decision, passed by the state cabinet, applies to all new high-rise residential and commercial developments, including apartments, offices, schools, hospitals, and industrial structures. Advertisement
Law Minister H. K. Patil stated that the cess will be levied on the assessed property tax value and will be borne by builders or property owners. He clarified that the additional charge is intended to help develop the state?s fire services, which are under strain due to increasing high-rise constructions and urban expansion.
This cess is applicable to all buildings exceeding 21 metres in height. It has been introduced by amending the Karnataka Fire Force Act, 1964, marking the first time such a levy is being brought in specifically for fire safety enhancement.
While the state government expects the cess to generate dedicated funds for fire infrastructure upgrades, developers and industry representatives have raised concerns. They argue that the added cost may be passed on to homebuyers, potentially pushing property prices further up. With rising input costs already affecting margins, developers fear this could reduce affordability for middle-income buyers.
The opposition has criticised the move, calling it unfair to taxpayers who are already dealing with high living costs. Some lawmakers have demanded more transparency in how the cess will be utilised and called for a clear mechanism for its collection and monitoring. Currently, it is not confirmed whether the cess will be collected through the BBMP or via a separate agency.
Despite these concerns, the government has maintained that the funds will be ring-fenced for fire service improvements and not diverted for any other purposes. The aim is to ensure better readiness and infrastructure to deal with emergencies, particularly in taller buildings where response times and access are more complex.
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