Nitish govt to impose 13.5% tax on luxury items; sweets, samosa to get costlier

Patna: The Nitish Kumar government on Tuesday decided to impose 13.5 per cent tax on luxury items including on sweets priced more than Rs 500 a kg and mosquito repellant among others to mop up additional revenue for carrying development work.

Decision to this effect was taken at a meeting of state cabinet presided over by Chief Minister Nitish Kumar here. Briefing about cabinet decisions, Principal Secretary, Cabinet Coordination Department, Brajesh Mehrotra told reporters that 13.5 per cent tax would be imposed on sweets priced more than Rs 500 a kg.

He said 13.5 per cent 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 per cent tax, Mehrotra said, adding, 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 per cent 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 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 practise.