New Tax Regime for Bihar Villages: Gram Panchayats Empowered to Levy Taxes

New Tax Regime for Bihar Villages: Gram Panchayats Empowered to Levy Taxes

📅 July 17, 2026 🏷️ Governance/Bihar News
In a landmark policy shift, the Bihar Cabinet has authorized Gram Panchayats to collect taxes and various fees, aiming to increase their internal revenue and fund rural infrastructure improvements.

### Key Highlights of the Cabinet Decisions:
* **Tax Empowerment:** Under the 'Gram Panchayat Tax, Rate and Fee Rules, 2026', Panchayats can now legally collect taxes on houses, trade, industry, and specific services, within limits set by the government.
* **Delimitation:** Panchayats will undergo a fresh delimitation process based on 2011 census data to ensure better administrative efficiency and representation ahead of upcoming elections.
* **Aviation Infrastructure:**
* Approval granted for greenfield airports in Rajgir, Rohtas, and Kaimur.
* The Bhagalpur greenfield airport will be renamed 'Ajgaibinath Dham Airport', with a land acquisition project covering 1,425 acres at an estimated cost of ₹556.12 crore.
* **Women's Safety - 'Police Didi':** To enhance safety for women and students near educational institutions, the government will deploy the 'Police Didi' initiative, supported by the procurement of 1,500 scooters (1,000 petrol, 500 electric) and 3,200 motorcycles for police personnel.
* **Education:** Expansion of the 'Saraswati Vidya Niketan' (Adarsh Vidyalaya) program to additional secondary and higher secondary schools across the state.

### Context:
This move is designed to make Panchayats financially self-sufficient. Previously, these local bodies lacked clear regulations or the legal authority to generate their own funds. Officials believe this institutional strengthening will result in balanced development and improved access to public facilities for village residents.

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