Patna: Property taxes on commercial establishments across Bihar, including in Patna, are set to rise significantly from April 1 under new guidelines issued by the Urban Development Department.
The revised structure will see hotels, private hospitals, shopping malls, gyms and warehouses paying between one-and-a-half to two times the existing tax rates. Officials said the move is aimed at increasing municipal revenues by placing a higher tax burden on properties with greater commercial activity.
The changes will be implemented across all municipal bodies and are expected to strengthen the financial capacity of urban local authorities. Religious and cultural institutions, however, have been exempted from property tax under the new system.
The hike marks the first major revision in non-residential property taxes in over three decades in areas governed by the Patna Municipal Corporation. The revision follows a notification issued under the Bihar Municipal Act, 2007, with officials citing evolving economic conditions and increased commercial activity as key reasons.
Under the new categorisation, properties will be taxed based on their size and usage. Establishments such as showrooms, malls, multiplexes, restaurants, guest houses, clinics, diagnostic centres and coaching institutes — particularly those ranging between 1,000 and 3,000 square feet — will face a tax increase of around 1.5 times.
Meanwhile, smaller entities such as cottage industries, shops below 500 square feet, smaller warehouses and non-commercial government offices will see no change in tax rates.
Industry observers said the move could increase operational costs for sectors such as hospitality, healthcare, real estate and education, potentially leading to higher prices for consumers.
However, civic officials maintain that the measure is necessary to enhance revenue generation and improve urban infrastructure and public services across cities in Bihar.
