Patna, June 14: Buying land in Bihar for reaping benefits of escalating real estate prices would be a passé. Soon people will be taxed for having vacant land.

Deputy chief minister Sushil Kumar Modi today said there would be provision for vacant land tax in the fresh land-related laws to be implemented by the state within a month.

“Currently, no tax is charged for barren land. However, under the proposed rules, if a land remains vacant for prolonged period, the owner of the plot would be required to pay vacant land tax,” Modi said.

Renting out parts of residential buildings would also result in paying extra taxes.

Modi said: “We are considering imposing tax on the commercial establishments like coaching, clinics, under the new rules.”

“Separate tax rates would be imposed on buildings partly given on rent. Normal holding tax would be charged for that area which is self-occupied by the owner, while higher tax would be charged for the area rented out,” said Modi.

The proposed rule would also have provision for registration of builders.

Modi also said new rules would soon be framed for simplifying the process of payment of holding tax in urban areas in Bihar.

“The tax collection system of urban bodies is not perfect. New rules are being charted out for simplification of the process to help raise the collection of holding tax in urban areas, ” Modi told reporters.

He said even in Patna urban area not more than half of the people pay holding tax for the lack of better system and tax realisation capacity.