The urban development and housing department (UDHD) in Patna has approved a significant reclassification of key city roads, a move that will lead to a substantial increase in property tax for thousands of residents and businesses. The upgrade of 19 major roads to the 'principal main road' (PMR) category means over 5,000 households will now see their residential property tax bills rise by approximately 1.5 times compared to previous rates.
Road Reclassification and Its Direct Impact
This major shift in the property tax calculation framework within the Patna Municipal Corporation (PMC) jurisdiction follows formal approval from the UDHD. The department initially classified the road upgrades on May 19, based on which the PMC issued an official notification on December 2. The civic body has released a comprehensive list of 112 roads across the city to outline the new classifications.
Under the new structure, 43 roads are now designated as PMRs, while 69 are categorized as main roads. This reclassification is strictly based on road width: PMRs are wider than 40 feet, main roads measure between 20 and 40 feet, and any road narrower than 20 feet falls into the 'other roads' category. Previously, Patna had only 24 PMRs and 88 main roads.
Which Areas Are Affected?
Nineteen popular areas that were previously in the 'main road' category have now been elevated to the premium PMR grade. This list includes prominent locations such as:
- Kankarbagh and Kidwaipuri
- Congress Maidan and Hardinge Road
- Budh Marg and Ashiana-Digha Road
- Ashok Rajpath and Anugrah Narayan Path
- Roads near NMCH and Hanuman Nagar
Other additions to the top tier include Vidyapati Marg, Sinha Library Road, Karbigahiya Road, and Sahdeo Marg. Conversely, roads like Bakarganj-Daldali Road, Bank Road, and Govind Mitra Road have been reclassified as main roads.
Commercial Properties Face Steeper Hike
The tax revision hits commercial establishments even harder, affecting around 48,000 properties under the PMC's jurisdiction. According to the new notification issued under the Bihar Municipal Act, 2007, these commercial properties will face tax increases ranging from 1.5 to 2 times their current rates.
High-revenue business establishments like hotels, gyms, private hospitals, banks, and marriage halls will bear the brunt with their taxes nearly doubling. Other commercial entities, including coaching centres, nursing homes, showrooms, shopping malls, and restaurants, will see their tax liabilities spike by about 1.5 times.
PMC's Compliance Drive and Tax Net Gap
To ensure adherence to the new tax order, the Patna Municipal Corporation will launch a special door-to-door campaign starting Monday. PMC teams will visit properties to assist residents in settling unpaid taxes and encourage them to clear dues through the One-Time Settlement (OTS) scheme. This drive will also help identify buildings that remain unregistered in the PMC's tax system.
The campaign highlights a significant gap in the city's tax collection records. While the Bihar State Power Holding Corporation Limited (BSPHCL) has over 5.48 lakh consumers in Patna, the number of properties officially registered under the PMC is substantially lower. This discrepancy suggests a large number of households and commercial units are still outside the formal tax net, leading to potential revenue losses for the civic body.
The road reclassification and subsequent tax hike represent a significant fiscal policy shift aimed at augmenting municipal revenues, which are crucial for urban infrastructure and service development in the state capital.
