Bihar Panchayats Get Power to Levy Holding Tax on Rural Properties
The Bihar government has authorised gram panchayats to impose and collect holding taxes on houses and commercial establishments in villages, as part of efforts to boost the state's own revenue.
The state cabinet approved the draft 'Gram Panchayat Taxes, Rates, and Fees Rules, 2026' on Wednesday, formalising the levy. With over 45,000 revenue villages, the government aims to collect Rs 1,300 crore annually from rural taxes.
Bihar currently generates about Rs 60,000 crore in annual revenue against a budget of approximately Rs 3.5 lakh crore, with central taxes and grants making up a large portion. The state's public debt stands at around Rs 4 lakh crore.
The move comes soon after the government decided to collect toll tax from commercial vehicles on state highways, reflecting efforts to reduce dependence on central transfers.
