Bihar Cabinet grants Panchayat tax powers, launches AI centre, greenfield airports

The Bihar Cabinet, chaired by Chief Minister Samrat Choudhary, approved 25 proposals in a meeting on 15 July 2026. Key decisions include the Gram Panchayat Tax Rate and Fee Rules, 2026, which give Gram Panchayats the authority to levy taxes and collect fees. Amendments to the Bihar Motor Vehicles Taxation Act raise the one‑time tax on two‑wheelers by 1% and on three‑wheelers by ₹1,000, while the trade tax on motor vehicles is increased fourfold.

The cabinet also approved the delimitation of Gram Panchayats, Panchayat Samitis and Zila Parishads based on the 2011 Census, reshaping local‑body boundaries. A Bihar State Artificial Intelligence Centre of Excellence Corporation was established, and a Bihar State Roadways Company Limited was created to improve transport services. Additional measures include a policy for the safe reuse of treated wastewater, an extension of the Tharuhat Development Agency scheme in West Champaran, and the transfer of 50.89 acres for the development of the Punaura Dham temple complex.

Infrastructure projects were given the green light, with land acquisition approved for new greenfield airports in five districts, including major sites in Bhagalpur and Munger, to expand the state’s air connectivity.