Bihar cabinet clears 25 proposals: Panchayats get tax powers, AI centre approved
Synopsis
In one of its broadest single-session approvals this year, the Bihar Cabinet under Chief Minister Samrat Choudhary cleared 25 proposals — granting Gram Panchayats the power to levy taxes for the first time under a 2026 framework, hiking motor vehicle trade tax fourfold, and formally establishing an AI Centre of Excellence Corporation, signalling a state pivoting from welfare-first governance toward technology-linked administration.
Key Takeaways
The Bihar Cabinet approved 25 proposals on 15 July 2026 under Chief Minister Samrat Choudhary .
The Gram Panchayat Tax Rate and Fee Rules, 2026 empower Gram Panchayats to levy taxes and collect fees.
Motor vehicle trade tax has been hiked fourfold ; two-wheeler one-time tax rises by 1% and three-wheeler tax by ₹1,000 .
The Bihar State Artificial Intelligence Centre of Excellence Corporation has been formally established.
50.89 acres of land approved for free transfer to the Punaura Dham trust in Sitamarhi .
The Tharuhat Development Agency schemes in West Champaran extended from 2025-26 to 2030-31 .
The Bihar Cabinet, chaired by Chief Minister Samrat Choudhary, on Wednesday, 15 July 2026, approved 25 agenda items spanning local governance, transport, tourism, social welfare, technology, and infrastructure. The sweeping set of decisions marks one of the more wide-ranging single-session approvals by the state government this year.
Panchayats Gain Taxation Authority
In a significant devolution of fiscal power, the Cabinet approved the Gram Panchayat Tax Rate and Fee Rules, 2026, formally empowering Gram Panchayats to levy taxes and collect prescribed fees under the new regulatory framework. The Cabinet also cleared the delimitation of Gram Panchayats, Panchayat Samitis, and Zila Parishads based on 2011 Census population figures, setting the stage for a structural reorganisation of local bodies in line with demographic realities.
Motor Vehicle Taxes Revised Upward
The Cabinet approved amendments to the Bihar Motor Vehicles Taxation Act, 1994. Under the revised provisions, the one-time tax on two-wheelers will rise by 1%, while the one-time tax on three-wheelers will increase by ₹1,000. Notably, the trade tax on motor vehicles has been hiked fourfold — a sharp increase that is likely to draw attention from the vehicle trade industry.
Elderly Welfare and Social Schemes
To strengthen care for senior citizens, the Cabinet approved the Chief Minister's Shelter Scheme for the Elderly (Mukhyamantri Vriddhjan Aashray Sthal Yojana), to be implemented through the Social Welfare Department. The existing Old Age Home Sahara Scheme will be merged into the new programme to consolidate administration and improve management of elderly care facilities across the state.
Tourism, Transport, and Technology Push
The Cabinet approved the formation of the Bihar State Roadways Company Limited, which will focus on providing accessible, safe, and modern transport services to religious tourism destinations and key locations across the state. In the tourism sector, the Maa Mundeshwari Bhawani Temple Trust Committee in Kaimur was authorised to manage a newly constructed dharamshala at the temple complex. The government also approved the free transfer of 50.89 acres of land to the trust developing Punaura Dham in Sitamarhi, revered as the birthplace of Goddess Sita.
On the technology front, the Cabinet cleared the establishment of the Bihar State Artificial Intelligence Centre of Excellence Corporation, approving its Memorandum of Association (MoA) and Articles of Association (AoA). This positions Bihar among the states formally institutionalising AI governance infrastructure.
Water Policy and Development Agency Extension
The Cabinet approved the Policy for Safe Reuse of Treated Wastewater, Bihar 2026, aimed at promoting sustainable water management across the state. It also extended the operational period of schemes under the Tharuhat Development Agency in West Champaran from 2025-26 to 2030-31, ensuring continuity of budgeted development funds for the region. Together, these decisions signal a state government intent on linking governance reform with longer-term infrastructure and welfare outcomes.
Point of View
Something Bihar's panchayats have historically struggled with. The AI Centre of Excellence is a welcome signal, but its MoA approval is just the first step — the real test will be whether it attracts talent and generates applied outcomes, or becomes another state-level tech entity that exists largely on paper.
NationPress
15 Jul 2026
Frequently Asked Questions
What were the key decisions taken by the Bihar Cabinet on 15 July 2026?
The Bihar Cabinet approved 25 proposals covering local governance, transport, tourism, welfare, and technology. Major decisions included granting Gram Panchayats taxation powers, hiking motor vehicle taxes, establishing an AI Centre of Excellence, and approving the Chief Minister's Shelter Scheme for the Elderly.
What are the Gram Panchayat Tax Rate and Fee Rules, 2026?
These are new rules approved by the Bihar Cabinet that formally empower Gram Panchayats to levy taxes and collect prescribed fees. The move is part of a broader push to devolve fiscal authority to local bodies in line with the 2011 Census-based delimitation also cleared at the same meeting.
How have motor vehicle taxes changed under the Bihar Cabinet's decision?
Under amendments to the Bihar Motor Vehicles Taxation Act, 1994, the one-time tax on two-wheelers rises by 1%, the one-time tax on three-wheelers increases by ₹1,000, and the trade tax on motor vehicles has been hiked fourfold.
What is the Bihar State Artificial Intelligence Centre of Excellence Corporation?
It is a newly approved state-level body whose Memorandum of Association and Articles of Association were cleared by the Bihar Cabinet on 15 July 2026. It is intended to institutionalise AI-driven governance and technology development in the state.
What is the Mukhyamantri Vriddhjan Aashray Sthal Yojana?
It is the Chief Minister's Shelter Scheme for the Elderly, approved by the Bihar Cabinet to strengthen welfare measures for senior citizens through the Social Welfare Department. The existing Old Age Home Sahara Scheme will be merged into this new programme for better administration.
