# Bihar Panchayats Get Taxation Powers

- Topic: india
- Source: The Hindu
- Published: 2026-07-16
- Original: https://www.thehindu.com/news/national/bihar/bihar-cabinet-authorises-gram-panchayats-to-levy-and-collect-taxes-in-panchayats/article71226662.ece
- Language: en
- Image: https://th-i.thgim.com/public/incoming/1xlt1s/article71228377.ece/alternates/LANDSCAPE_1200/17_RVM_0672.jpg

The Bihar cabinet has authorized Gram Panchayats to levy and collect taxes, enabling them to develop their own financial resources and reduce dependence on the state government. This move aims to strengthen local self-governance and promote regional balance in development. The cabinet also approved several water supply projects and a sewerage network in Hajipur.

## Key takeaways

- Gram Panchayats can now impose holding tax, fees on professions, and user charges for services.
- The move is expected to increase Gram Panchayats' Own Source Revenue (OSR) and strengthen their financial self-reliance.
- The cabinet also approved several water supply projects and a sewerage network in Hajipur under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT 2.0)

> Summary by Daily Read Bytes. Read the original at https://www.thehindu.com/news/national/bihar/bihar-cabinet-authorises-gram-panchayats-to-levy-and-collect-taxes-in-panchayats/article71226662.ece