The Bihar government today decided to impose a 13.5 percent tax on luxury items, including on sweets priced more than Rs 500 a kilo and mosquito repellant among other things, to mop up additional revenue for its development work.
Decision to this effect was taken at a meeting of the state cabinet presided over by Chief Minister Nitish Kumar here.
Briefing reporters, Brajesh Mehrotra, the Principal Secretary of the Cabinet Coordination Department, said a 13.5 percent tax would be imposed on sweets priced more than Rs 500 a kg.
He said 13.5 percent tax would be taken on salty items like samosa, kachauri and branded namkin among others.
Sale of all kind of UPS would attract 13.5 percent tax, Mehrotra said, adding a similar rate of tax would be imposed on auto parts and battery parts.
Sand, cosmetic items, scent and hair oil would also attract 13.5 percent tax, he added. The Bihar cabinet put its seal of approval on 23 proposals of different departments. The cabinet decided to waive off entertainment tax on the movie “Chalk N Duster,” which gives a strong social message.
The Nitish Kumar cabinet also decided to consider in the future on providing Non Professional Allowance to doctors and those in teaching faculty in medical colleges and super speciality hospitals in a bid to ban their private practice.
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