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Home Bihar

Bihar Urban Local Bodies Barred From Road Tax And Octroi Collection, Officials Warned Of Action For Violations

Urban Development Minister Nitish Mishra directs municipal bodies to stop unauthorised collections and warns officials of disciplinary action for violations.

Lakshita Kashyap by Lakshita Kashyap
August 27, 2026
in Bihar
Reading Time: 2 mins read
Bihar Urban Local Bodies Barred From Road Tax And Octroi Collection, Officials Warned Of Action For Violations
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Patna: Bihar’s Urban Development and Housing Department has directed all urban local bodies to immediately stop collecting road tax, entry service fees or octroi from heavy vehicles until the relevant rules and regulations are formally framed and come into effect.

Urban Development and Housing Minister Nitish Mishra said such collections can be made only in accordance with rules framed under the Bihar Municipal Act, 2007.

The minister said the department has not yet framed rules or regulations governing road tax collection. Until then, urban local bodies cannot collect such charges under any name, form or method.

Directives Issued To Municipal Bodies

Mishra said the department has issued instructions on the matter several times in the past, making it clear that municipal bodies must not collect road tax, entry service fees or octroi until the required rules are notified.

However, the department has received information about some urban local bodies collecting money from heavy vehicles by describing the charges as entry service fees, octroi or other similar levies.

The minister has now directed all Municipal Commissioners and Executive Officers of Municipal Councils and Nagar Panchayats to ensure that such collections stop immediately.

Officials Warned Of Disciplinary Action

Mishra said departmental instructions must be followed “in letter and spirit” and warned that officials responsible for unauthorised collections would be held accountable.

If any urban local body continues to collect road tax or similar charges in violation of departmental directions, the concerned Municipal Commissioner or Executive Officer will face disciplinary action in accordance with the applicable rules.

The department will also monitor complaints and cases related to such collections and take action against violations, according to the minister.

Urban local bodies have been directed not to collect any unauthorised vehicle-related charges until the relevant rules and regulations are framed and brought into force.

Tags: BiharBihar GovernmentBihar NewsNitish MishraOctroiroad taxUrban Local Bodies

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