The fee increase would see CBD parking rates rise from $1 an hour to $1.20, and all day parking prices rise 50c a day from $2.50 to $3, raising an estimated extra $50,000 a year.

That extra revenue has been earmarked to help facilitate the construction of a $105,000 car park at the Astronomy Centre, a $350,000 upgrade to the Gipps Street car park, a $150,000 long vehicle car park on the old skate park, an $80,000 car park at the new skate park, and a $200,000 car park at Treloar Park.

All five of those car parks have proposed completion dates within the next two years.

Council's director corporate and governance Chris Weber said the proposed change "is about creating additional capacity to provide and further enhance car parking facilities... and for businesses to get higher possible use."

However Tamworth Business Chamber president Jye Segboer has questioned why money being raised from CBD car parking is not being spent on CBD car parking, as well as the timing of the proposed fee hike.

"The chamber is not unsupportive of the rise in fees, however we feel that money raised from parking in the CBD should be spent on parking in the CBD," he said.

"We would like to see more infrastructure put in place to increase parking, like another storey on the Centerpoint car park, or a multi-level facility built on the car park in Bicentennial Park.

"CBD workers will be paying an extra $10 a week each - it is not an ideal time to be increasing costs so we propose that the increase be implemented over three years as an alternative."

Council has not increased parking prices since 2013, with its website also stating "out of seventeen regional cities across Australia that are comparative in size, Tamworth has the lowest CBD car parking rates."

The CBD boasts 3730 car spaces, of which 20 per cent, or some 760 spaces are metered, however Mr Segboer believes that more are needed as the city grows in population.

"We want to see increased revenue going to CBD parking, rather than sports complexes," Mr Segboer said.