‘Just to fulfill freebies’: Top fund manager slams tax spike as bills in Bengaluru explode

Bengaluru’s affordability crisis is deepening, with one of India’s top fund managers calling out “so many tax increases — just to fulfill the freebies promises,” as the cost of living surges across the city. From water and milk to power, transport, and rent, nearly every essential now comes with a steeper price tag, forcing households to recalculate — or break — their monthly budgets.

Bengaluru residents are facing a steady squeeze, with fresh hikes across utilities and services. The latest blow: a 32% increase in water tariffs and a 25% hike in sewage charges — coming right after milk prices more than doubled.

Many households report an additional outgo of up to ₹5,000 each month.

This year alone, cost escalations have touched every category:

• Power rates are up by 36 paise per unit
• Metro fares have jumped 45–50%, bus fares by 15%
• Sales tax on diesel is up 10–15%, on petrol by 3.92%
• Stamp duty and registration fees have surged by 13–47%
• Milk prices have climbed from ₹40 to ₹82 per litre
• Diesel has gone from ₹55 to ₹90
• Medical service fees, beer, and liquor duties are up by 4–20%
• State-run universities have announced a 10% annual fee hike

Residential rents haven’t been spared either. Mid-range markets are seeing a 7% rise, while PG-heavy and commuter zones report hikes between 4–20%.

The government has attributed the price hikes to rising operational costs, fuel inflation, and the need to fund welfare schemes. But for most citizens, the explanation doesn’t soften the blow.

As expenses rise faster than incomes, the city’s middle class is left with tough choices — cut corners, move out, or get used to paying more for less.