Bihar govt launches property tax interest & penalty waiver scheme; valid till March 2026

Patna, Dec 1 (IANS) The Bihar Urban Development and Housing Department has implemented the municipal property tax incentive, interest and penalty waiver scheme 2025, providing major relief to property tax defaulters in urban areas across the state.

The scheme will remain in force until March 31, 2026.

Under this initiative, tax defaulters who have not paid their dues for several years can now clear their outstanding amounts without any interest or penalty.

The Lakhisarai Municipal Council has launched a citywide awareness drive regarding the scheme.

Raman Kumar, Executive Officer of the Lakhisarai Municipal Council, has been conducting an extensive campaign across the city.

"Billboards have been installed at major intersections, urging urban residents to take advantage of this limited-time relief," Kumar said.

The first holding survey in the Lakhisarai Municipal Council was conducted in 2006, identifying more than 20,000 holdings.

"At the time, tax collection was extremely poor, with lakhs of rupees going uncollected every year. Many residents remained indifferent towards paying municipal taxes, which led to a rise in long-term defaulters," Kumar added.

"Even today, more than Rs 1.5 crore remains outstanding, with 3,000 to 4,000 residents not having paid holding tax even once since 2006," he said.

"To address this backlog, the department has provided a significant waiver for defaulters until March 31, 2026. Anyone can settle their outstanding dues during this period without incurring additional charges," he added.

This year, the Municipal Council has till now collected Rs 90 lakh in revenue -- an encouraging rise attributed partly to the new scheme and the ongoing awareness campaign.

Besides Lakhisarai, this scheme has been implemented across the entire state, providing major relief to residents -- especially those living in old houses in urban areas who have pending holding tax dues.

After the formation of the new government in Bihar, many such welfare-oriented initiatives are expected to be introduced under the leadership of Chief Minister Nitish Kumar.

--IANS

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