The Eastern Voice correspondent

Patna. The Bihar Cabinet has approved the Gram Panchayat Taxes, Rates, and Fees Rules, 2026 in a major policy decision to reduce financial pressure on the state. For the first time, Bihar has introduced a working system that allows its 45,000 revenue villages to collect local taxes. The government aims to collect around ₹1,300 crore every year through this system to reduce the state’s dependence on other sources of funds.

Under the new rules, kuccha houses are fully exempt from residential holding tax. PMAY houses will pay ₹25 per year, semi-pucca houses ₹50, and pucca houses ₹100 annually. A service charge of ₹25 per year has been fixed for water supply and cleanliness. Commercial establishments such as petrol pumps and brick kilns will pay a fixed annual fee of ₹5,000, along with taxes on local markets and advertisements.

Following the recommendations of the Central Finance Commission, 100% of the collected revenue will remain with the respective Gram Panchayats. The money must be used exclusively for local infrastructure projects, including village roads, drainage systems, sanitation, and clean drinking water facilities.