Bihar Cabinet Approves 25 Proposals: Panchayats Get Taxation Powers

Bihar cabinet approves 25 proposals; Panchayats get taxation powers, AI centre of excellence cleared

Patna, July 15

Among the most significant decisions, the Cabinet approved the Gram Panchayat Tax Rate and Fee Rules, 2026, empowering Gram Panchayats to levy taxes and collect prescribed fees under the new regulatory framework.

To strengthen welfare measures for senior citizens, the Cabinet approved the implementation of the Chief Minister's Shelter Scheme for the Elderly (Mukhyamantri Vriddhjan Aashray Sthal Yojana) through the Social Welfare Department.

The existing Old Age Home Sahara Scheme will be merged into the new programme to ensure better administration and management of elderly care facilities.

The Cabinet also approved amendments to the Bihar Motor Vehicles Taxation Act, 1994. Under the revised provisions, the one-time tax on two-wheelers will increase by 1%, while the one-time tax on three-wheelers will be raised by Rs 1,000.

Additionally, the trade tax on motor vehicles has been increased fourfold.

In another important decision, the Cabinet approved the delimitation of Gram Panchayats, Panchayat Samitis, and Zila Parishads based on the 2011 Census population, paving the way for the reorganisation of local bodies in line with demographic changes.

The government also extended the operational period of schemes implemented through the Tharuhat Development Agency in West Champaran from 2025-26 to 2030-31, allowing budgeted funds to continue supporting development projects selected under the agency.

To improve public transportation and promote tourism, the Cabinet approved the formation of the Bihar State Roadways Company Limited.

The proposed company will focus on providing accessible, safe, and modern transport services to religious tourism destinations and other important locations across the state.

In the tourism sector, the Cabinet authorised the Maa Mundeshwari Bhawani Temple Trust Committee in Kaimur to manage and maintain the newly constructed dharamshala built by the Tourism Department at the temple complex.

It also approved the free transfer of 50.89 acres of land to the trust responsible for developing Punaura Dham in Sitamarhi, revered as the birthplace of Goddess Sita.

Emphasising technological advancement, the Cabinet approved the establishment of the Bihar State Artificial Intelligence Centre of Excellence Corporation and cleared its Memorandum of Association (MoA) and Articles of Association (AoA).

The Council of Ministers also approved the Policy for Safe Reuse of Treated Wastewater, Bihar 2026, aimed at promoting sustainable water management and the reuse of treated wastewater for suitable purposes.

The decisions reflect the state government's focus on strengthening local governance, improving public services, promoting religious tourism, advancing technology-driven governance, and enhancing welfare initiatives across Bihar.

— IANS