diff --git a/pkg/provisioner/block/block.go b/pkg/provisioner/block/block.go
index 4a8f1998e..f6ddca735 100644
--- a/pkg/provisioner/block/block.go
+++ b/pkg/provisioner/block/block.go
@@ -38,8 +38,11 @@ import (
 )
 
 const (
-	ociVolumeID            = "ociVolumeID"
-	ociVolumeBackupID      = "volume.beta.kubernetes.io/oci-volume-source"
+	ociVolumeID       = "ociVolumeID"
+	ociVolumeBackupID = "volume.beta.kubernetes.io/oci-volume-source"
+	ociTagAnnotation  = "oraclecloud.com/additional-tags"
+
+	defaultTagsEnvVar      = "OCI_DEFAULT_TAGS"
 	volumePrefixEnvVarName = "OCI_VOLUME_NAME_PREFIX"
 	fsType                 = "fsType"
 )
@@ -113,6 +116,14 @@ func (block *blockProvisioner) Provision(options controller.VolumeOptions, ad *i
 		SizeInMBs:          common.Int(volSizeMB),
 	}
 
+	definedTags, freeformTags, err := getTags(options.PVC.Annotations)
+	if err != nil {
+		return nil, err
+	}
+
+	volumeDetails.DefinedTags = definedTags
+	volumeDetails.FreeformTags = freeformTags
+
 	if value, ok := options.PVC.Annotations[ociVolumeBackupID]; ok {
 		glog.Infof("Creating volume from backup ID %s", value)
 		volumeDetails.SourceDetails = &core.VolumeSourceFromVolumeBackupDetails{Id: &value}
@@ -172,6 +183,72 @@ func (block *blockProvisioner) Provision(options controller.VolumeOptions, ad *i
 	return pv, nil
 }
 
+func getTags(annotations map[string]string) (defined map[string]map[string]interface{}, freeform map[string]string, err error) {
+	defaultDefinedTags, defaultFreeformTags, err := parseTags(os.Getenv(defaultTagsEnvVar))
+	if err != nil {
+		return nil, nil, err
+	}
+
+	definedTags, freeformTags, err := parseTags(annotations[ociTagAnnotation])
+	if err != nil {
+		return nil, nil, err
+	}
+
+	// merge annotation tags with default tags
+	for namespace, tags := range definedTags {
+		if _, ok := defaultDefinedTags[namespace]; !ok {
+			defaultDefinedTags[namespace] = map[string]interface{}{}
+		}
+
+		for tag, value := range tags {
+			defaultDefinedTags[namespace][tag] = value
+		}
+	}
+
+	for tag, value := range freeformTags {
+		defaultFreeformTags[tag] = value
+	}
+
+	return defaultDefinedTags, defaultFreeformTags, nil
+}
+
+func parseTags(tagStr string) (defined map[string]map[string]interface{}, freeform map[string]string, err error) {
+
+	defined = map[string]map[string]interface{}{}
+	freeform = map[string]string{}
+
+	if tagStr == "" {
+		return
+	}
+
+	for _, tag := range strings.Split(tagStr, ",") {
+		parts := strings.Split(tag, "=")
+		if len(parts) != 2 {
+			return nil, nil, fmt.Errorf("tag format must follow (<namespace>.)<tagkey>=<value>: %q", tag)
+		}
+
+		key, value := parts[0], parts[1]
+
+		keyParts := strings.Split(key, ".")
+		if len(keyParts) == 1 {
+			freeform[key] = value
+		} else if len(keyParts) == 2 {
+			namespace, key := keyParts[0], keyParts[1]
+			namespaceTags, ok := defined[namespace]
+			if !ok {
+				namespaceTags = map[string]interface{}{}
+				defined[namespace] = namespaceTags
+			}
+
+			namespaceTags[key] = value
+		} else {
+			return nil, nil, fmt.Errorf("tag format must follow (<namespace>.)<tagkey>=<value>: %q", tag)
+		}
+	}
+
+	return
+}
+
 // Delete destroys a OCI volume created by Provision
 func (block *blockProvisioner) Delete(volume *v1.PersistentVolume) error {
 	volID, ok := volume.Annotations[ociVolumeID]
diff --git a/pkg/provisioner/block/block_test.go b/pkg/provisioner/block/block_test.go
index 84172f196..f9040c8c0 100644
--- a/pkg/provisioner/block/block_test.go
+++ b/pkg/provisioner/block/block_test.go
@@ -17,6 +17,8 @@ package block
 import (
 	"context"
 	"fmt"
+	"os"
+	"reflect"
 	"testing"
 	"time"
 
@@ -181,6 +183,102 @@ func TestVolumeRoundingLogic(t *testing.T) {
 	}
 }
 
+func TestGetTags(t *testing.T) {
+	testCases := map[string]struct {
+		setup                func()
+		annotations          map[string]string
+		expectedDefinedTags  map[string]map[string]interface{}
+		expectedFreeformTags map[string]string
+	}{
+		"no default or annotation tags": {
+			setup: func() {
+				os.Setenv(defaultTagsEnvVar, "")
+			},
+			annotations:          map[string]string{},
+			expectedDefinedTags:  map[string]map[string]interface{}{},
+			expectedFreeformTags: map[string]string{},
+		},
+		"valid tags only default": {
+			setup: func() {
+				os.Setenv(defaultTagsEnvVar, "defaultnamespace.default=test,default=test")
+			},
+			annotations: map[string]string{},
+			expectedDefinedTags: map[string]map[string]interface{}{
+				"defaultnamespace": map[string]interface{}{
+					"default": "test",
+				},
+			},
+			expectedFreeformTags: map[string]string{
+				"default": "test",
+			},
+		},
+		"valid tags with default": {
+			setup: func() {
+				os.Setenv(defaultTagsEnvVar, "namespace1.default=test,default=test")
+			},
+			annotations: map[string]string{
+				ociTagAnnotation: "namespace1.test=foo,namespace2.test=bar,bar=baz,namespace1.test2=bar,foo=bar",
+			},
+			expectedDefinedTags: map[string]map[string]interface{}{
+				"namespace1": map[string]interface{}{
+					"test":    "foo",
+					"test2":   "bar",
+					"default": "test",
+				},
+				"namespace2": map[string]interface{}{
+					"test": "bar",
+				},
+			},
+			expectedFreeformTags: map[string]string{
+				"bar":     "baz",
+				"foo":     "bar",
+				"default": "test",
+			},
+		},
+		"override defaults with annotation": {
+			setup: func() {
+				os.Setenv(defaultTagsEnvVar, "namespace1.default=test,default=test")
+			},
+			annotations: map[string]string{
+				ociTagAnnotation: "namespace1.default=foo,default=bar",
+			},
+			expectedDefinedTags: map[string]map[string]interface{}{
+				"namespace1": map[string]interface{}{
+					"default": "foo",
+				},
+			},
+			expectedFreeformTags: map[string]string{
+				"default": "bar",
+			},
+		},
+	}
+
+	for name, tc := range testCases {
+		t.Run(name, func(t *testing.T) {
+			defer func() {
+				os.Setenv(defaultTagsEnvVar, "")
+			}()
+
+			if tc.setup != nil {
+				tc.setup()
+			}
+
+			defined, freeform, err := getTags(tc.annotations)
+			if err != nil {
+				t.Fatal(err)
+			}
+
+			if !reflect.DeepEqual(defined, tc.expectedDefinedTags) {
+				t.Errorf("defined tags not equal: got %v ; wanted %v", defined, tc.expectedDefinedTags)
+			}
+			if !reflect.DeepEqual(freeform, tc.expectedFreeformTags) {
+				t.Errorf("freeform tags not equal: got %v ; wanted %v", freeform, tc.expectedFreeformTags)
+			}
+		})
+
+	}
+}
+
 func createPVC(size string) *v1.PersistentVolumeClaim {
 	return &v1.PersistentVolumeClaim{
 		ObjectMeta: metav1.ObjectMeta{},