Tax will have to be paid here and there in Bihar
In the last one month, the government in Bihar has taken many such decisions one after the other, which will directly impact the people of Bihar. The cabinet led by Chief Minister Samrat Chaudhary recently approved the Panchayat Tax and Motor Vehicle Tax. Even before this, the government has taken decisions ranging from circle rate to toll tax. These are such decisions, whose impact will not be limited to any one section of the society. If you are planning to buy land, build a new house, buy a bike or auto, travel on the road daily or live in a village, then one or the other of these decisions will directly affect you. The biggest change has been in the circle rates related to land registry, where in many areas the minimum prices have been doubled. Apart from this, stamp duty has been increased, there has been a major amendment in the holding tax in Patna after 30 years. Let us understand about it in details.
1. Buying land has become expensive, circle rates have doubled in many places
Bihar government has implemented a major amendment in the Minimum Value Register (MVR) i.e. circle rate. Under the new system, the minimum land prices in urban areas have been increased by up to 100 percent, while in rural and peripheral areas the circle rate has been increased by 1.6 times. This will have a direct impact on land buyers because the registry fee is decided on the basis of circle rate. This means that now on purchasing land, you will have to pay more stamp duty and registration fees than before. Government land prices have doubled in many places in cities like Raxaul and Patna.
2. Holding tax increased in Patna after 30 years
After the circle rate, the government also increased the holding tax. Home owners living in the capital Patna have also faced additional financial burden. The Urban Development and Housing Department has approved an increase of about 15 percent in the Annual Rental Value (ARV) for calculating holding tax. This amendment has been done on such a large scale for the first time since 1995. Under the new system, tax on residential, commercial and other category properties located on main road, main main road and other roads will increase. Pucca, asbestos and kutcha houses will also come under its purview. This means that now the landlords of Patna will have to pay more holding tax than before.
3. Toll may have to be paid on state highways also
Till now most of the people of the state had to pay toll only on the National Highway, but soon they may have to pay toll on the state highways, big bridges and bypasses of Bihar also. The state government has approved ‘Road User Fee (Determination and Collection of Rates) Rules-2026’. According to the proposed rates, toll has been fixed at Rs 1.25 per kilometer for cars, jeeps and light vehicles. The proposed toll is Rs 2 per kilometer for small commercial vehicles, Rs 4.25 per kilometer for two-axle trucks and buses, Rs 6.65 per kilometer for heavy vehicles and Rs 8.10 per kilometer for seven-axle vehicles. However, at present these rules have only been approved and are yet to be implemented. After implementation, it may have an impact on daily commuters and the cost of freight transportation.
4. Buying bikes, scooters and three-wheelers also became expensive
The state government has also made changes in motor vehicle tax. According to the cabinet decision, now 1 percent additional motor vehicle tax will have to be paid on purchasing a two-wheeler. This means that people buying a new bike or scooter will have to pay more than before. At the same time, additional burden has been imposed on those purchasing three-wheelers. Now, in addition to the already fixed tax, an additional tax of Rs 1,000 will have to be paid on auto rickshaws and other three-wheelers. The government says that this additional revenue will be used in development works and improving road infrastructure.
5. Now Panchayats will also collect different taxes and fees
The government not only increased the circle rate, holding tax and motor vehicle tax, but the biggest decision was taken in the form of Panchayat tax. There has also been a big change for the people living in villages. By approving the Gram Panchayat Tax, Rates and Fees Rules-2026, the Bihar government has given the Panchayats the right to collect various types of taxes and fees. Under the new system, Panchayats will be able to levy various types of taxes and fees ranging from Rs 50 to Rs 5,000. An annual tax of Rs 100 will be taken on pucca houses, Rs 50 on semi-pucca houses and Rs 25 on houses built under Pradhan Mantri Awas Yojana. Apart from this, cleaning fee has been fixed at Rs 30 and water supply fee has also been fixed at Rs 30. An annual fee of up to Rs 5,000 will be imposed not only on the common people, but also on commercial establishments like petrol pumps, LPG agencies, brick kilns and cinema halls. Panchayats will also be able to collect tax on hoardings and other advertising mediums as per the rules.
Also read- Bihar Panchayat Tax: Preparation to collect Rs 1200 from every house, know the complete plan
What is the government’s argument?
The government says that the objective of these decisions is to increase the state’s revenue, make local bodies financially self-reliant and raise resources for development projects. However, if seen from the perspective of common people, the impact of these decisions taken in the last one month is sure to be visible on their daily life and household budget. Be it buying a house, getting land registered, buying a new vehicle or traveling on state roads in future, in many places you may have to spend more than before. Bihar government is making these announcements to improve its budget but it will have a direct impact on the pockets of the common man.
Also read- Bihar New Circle Rate: Rs 12 in Raxaul, Rs 3 crore in Patna per circle, what is the new price of land in Bihar?
