HOLDING TAX HIKED

HOLDING TAX HIKED

25-JUNE-ENG 8

RAJIV NAYAN AGRAWAL

PATNA------------------------Holding Tax Patna: Patna homeowners have received a significant jolt. Holding tax has been increased by up to 15 percent. The new rates came into effect on Wednesday. This move will enable the Patna Municipal Corporation to generate higher revenue.

Holding Tax Patna: Holding tax within the Patna Municipal Corporation area has been raised by 15 percent. Following approval from the Urban Development and Housing Department on June 22, the new rates became effective on Wednesday. Subsequently, the municipal administration issued an order regarding this.

Consequently, holding tax rates have increased by 15 percent per square foot across all categories—including residential, commercial, and other properties situated along prime main roads, main roads, and other roads. For instance, if a homeowner previously paid an annual holding tax of ₹1,000, they will now have to pay ₹1,150.

This revision in the Annual Rental Value (ARV) within the Patna Municipal Corporation marks the first such increase since 1995. The Empowered Standing Committee and the Corporation Board of the Patna Municipal Corporation had approved the 15 percent hike back in 2021. Under Section 127 of the Bihar Municipal Act, 2007, it is mandatory to increase the rental value per square foot of built-up area for various categories of holdings by a minimum of 15 percent every five years. Additionally, a municipal body may revise rental values ​​and rates at any time during the five-year period, subject to prior approval from the state government. The increase in holding tax rates will result in higher revenue for the corporation. Increase in Municipal Corporation Revenue Likely

The municipal administration stated that the hike in holding tax will boost the Patna Municipal Corporation's revenue. This increase has been implemented in accordance with the provisions of the Bihar Municipal Act. The funds generated from the increased holding tax will be utilized to strengthen urban infrastructure and expand facilities related to sanitation, roads, drainage, street lighting, and civic amenities. The Corporation announced that a five percent rebate will be offered if the holding tax for the year 2026-27 is paid in a lump sum by June 30.