Patna: The Bihar government has approved a major revision in commercial (non-residential) property tax, with rates set to increase by up to two times across the state. This is the first such hike in 33 years. The Patna Municipal Corporation (PMC) has formally accepted the revised rules, and other urban local bodies across Bihar have also given their consent.
The new tax structure, based on 13 assessment parameters, will come into effect from the next financial year. The last revision in non-residential property tax was carried out in 1993.
The Urban Development Department had earlier sought suggestions from municipal bodies across the state. After receiving feedback, a survey was conducted in all 19 municipal corporations, including Patna. Based on this exercise, tax rates have been revised under the Bihar Municipal Property Tax (Assessment, Collection and Recovery) Rules, 2013.
Officials said the number of commercial establishments has increased significantly in Bihar’s cities. In Patna alone, the number of business establishments has grown to nearly 3.5 lakh in the last five years, but tax collection was still being done under the old rates.
With the new tax regime, revenue of all 261 urban local bodies in the state is expected to increase. The additional funds will be used for civic amenities and development works, reducing dependence on state and central government grants.
No Increase for These Categories
No tax hike will apply to cottage industries, small shops with area less than 500 sq ft, warehouses below 1,000 sq ft, and government offices not engaged in commercial activity. Cultural and religious institutions will also remain exempt.
One-and-a-Half Times Increase
A 1.5x hike will apply to medium-sized shops (1,000–3,000 sq ft), showrooms, shopping malls, cinemas, multiplexes, laboratories, restaurants, guest houses, nursing homes, clinics, diagnostic centres, coaching centres, private schools and colleges, research institutes and hostels.
Twofold Increase
A double tax rate will be levied on hotels, bars, health clubs, clubs, gyms, banquet halls, commercial offices, financial institutions, insurance offices, banks, private hospitals, industries (other than cottage industries), workshops, warehouses above 3,000 sq ft, and government establishments engaged in commercial activities.
Patna Mayor Sita Sahu said the city is witnessing rapid development and expansion of business activity. “Patna Municipal Corporation has accepted the revised non-residential property tax rules of the state government. This will increase our revenue and help speed up public welfare and infrastructure projects. There is no increase in residential or domestic property tax,” she said.
The move is expected to significantly strengthen the financial position of urban bodies and accelerate development work across Bihar’s cities.




















