- By Akansha Pandey
- Tue, 09 Sep 2025 09:15 PM (IST)
- Source:Jagran News Network
In a major relief for urban businesses and shopkeepers, the state government has announced a reduction of up to 50% in commercial property tax. The Cabinet has approved a proposal to provide tax rebates for four categories of non-residential properties, for which Rule 4 of the Bihar Municipal Property Tax (Assessment, Collection, and Recovery) Rules, 2013, has been amended.
According to departmental information, the tax changes are as follows:
For healthcare establishments like nursing homes, clinics, dispensaries, labs, and diagnostic centers, the property tax has been cut from three times the base rate to one-and-a-half times .
For businesses like hotels, health clubs, gyms, clubs, and marriage halls, the tax has been reduced from three times the base rate to twice the base rate.
The biggest relief has been given to small businesses. For cottage industries, shops under 500 sq. ft., and warehouses under 1,000 sq. ft., the property tax, which was earlier double, has now been brought back to the standard single rate.
Relief has also been provided to commercial offices, financial institutions, insurance company offices, banks, and private hospitals, with their tax being reduced from three times to twice the base rate.
No New Relief for These Establishments
However, some commercial establishments have not been included in this new tax relief. Establishments like showrooms, shopping malls, cinema halls, restaurants, large guesthouses, large warehouses, all types of coaching centers, hostels, private schools, and colleges will continue to pay property tax at the earlier rate of one-and-a-half times the base rate.
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Hope for Increased Revenue Collection
The Minister of the Urban Development and Housing Department, Jivesh Kumar, stated that the property tax rates, which had been in effect since 2013, were increased up to three times in 2023. He said the state government has taken this decision to encourage reluctant taxpayers to pay up, improve revenue collection, and protect the interests of small shopkeepers, cottage industries, affordable healthcare providers, and small and medium-sized businesses.
This decision was based on the recommendations of a five-member committee formed at the departmental level. The government hopes that this reduction in commercial taxes will lead to an increase in revenue collection. The minister also expressed his gratitude to the Chief Minister and the Deputy Chief Minister for approving the amendment.
