Karnataka Cabinet Approves 1% Fire Cess on New Multi-storey Buildings

The Karnataka State Cabinet has approved a 1% fire cess on newly constructed multi-storey buildings across Bengaluru and the rest of the state. Formulated as an amendment to the Fire Force Act, 1964, the cess is structured as a surcharge on property tax and extends to residential apartments, offices, schools, hospitals, and industrial structures.

The state government has stated that the additional funds generated through this levy will be allocated toward enhancing fire prevention infrastructure and emergency response capabilities within rapidly urbanizing regions. Developers and property stakeholders regard the levy as likely to have a marginal impact on construction costs and, consequently, slightly raise property prices.

The fire cess will apply to all new high-rise developments from the date the amended Fire Force Act comes into force. While the objective centres on strengthening public safety infrastructure, the real estate industry notes that the timing and lack of clarity on collection methods such as whether the levy will be integrated into existing property tax systems or administered separately could influence project budgeting and pricing.

Also Read:Karnataka Doubles Property Registration Fee from 1% to 2% Starting August 31, 2025