PATNA: The Bihar cabinet on Wednesday authorised Gram Panchayats to impose and collect taxes to enable them to develop their own financial resources, thus reducing their dependence on state government.
The cabinet meet, chaired by Chief Minister Samrat Choudhary, gave nod to the draft “Gram Panchayat Taxes, Rates and Fees Rules, 2026”, Cabinet Secretariat Department’s Additional Chief Secretary Arvind Kumar Chaudhary said.
It may be noted that no rules have yet been framed in light of the provisions of the Bihar Panchayat Raj Act, 2006 and therefore, it became necessary to identify taxes and fees that may be levied by Panchayats, prescribe their maximum limits, and establish a procedure for their imposition, determination of rates, and collection so that Panchayats can collect these taxes and fees effectively.
It was among the 30 decisions taken at today’s cabinet meeting. As per the draft Rules, the Gram Panchayats can now impose holding tax on occupants of holdings within the Gram Panchayat area, fees on professions, trades, advertisement, hoardings and industries operating within panchayat area, besides user charges for services provided by panchayat.