Bihar imposes 13.5% luxury tax on samosas, sweets priced more than Rs 500 a kg

Bihar government has decided to impose 13.5% luxury tax on samosas along with sweets priced above Rs 500 a kg and mosquito repellant as well. Reportedly, this tax is levied to gather additional revenue for carrying development work in Nitish Kumar-led Bihar state.

Officials said the Cabinet gave a nod to raise the value-added tax on at least 12 items.

"13.5% tax would be taken on salty items like samosa, kachauri and branded namkin (salted snack) among others," said Brajesh Mehrotra, Principal Secretary, Cabinet Coordination Department to PTI in Patna.

"Tax would be imposed on sweets priced more than Rs 500 per kg," he added. 

Similar rate of tax will be imposed on all kind of UPS units, auto parts, battery parts, sand cosmetics, perfumes and hair oil, according to media reports.

The Bihar cabinet put its seal of approval on 23 proposals of different departments.

The state cabinet has also decided to waive off entertainment tax on movie "Chalk N Duster" starring Shabana Azmi, Juhi Chawla and Divya Dutta. "The movie gives a strong message," the cabinet added.

In order to ban private practice, the cabinet has decided to provide a Non Professional Allowance to doctors who teach in medical colleges and super speciality hospitals.