Explanation:

The rules for collection of tax by the Gram Panchayats have been prepared and preparations are on to get the approval of the cabinet, after getting the approval of the cabinet, the rules will be implemented in Bihar, after that the tax will be collected according to the rules set by the panchayats. Under this rule, ? 250 tax will be charged annually from tractors running as commercial use in gram panchayats, panchayats will collect annual tax from haats, markets, fairs etc. in the gram panchayat area.Panchayati Raj was implemented in Bihar in 2006, Panchayati Raj Act 2006 has empowered Panchayats to collect tax. Panchayati Raj system in Bihar first came into existence under the “Bihar Panchayat Samiti and Zilla Parishad Act, 1961, which was given the status of law on 17 February 1962.