13/01/2016 2:11 PM IST | Updated 15/07/2016 8:25 AM IST

Bihar Govt To Tax Samosa And Kachauri To Make Up For Loss In Revenue After Liquor Ban

Udaipur, Rajasthan, India, Indian Sub-Continent, Asia
Greg Elms via Getty Images
Udaipur, Rajasthan, India, Indian Sub-Continent, Asia

PATNA -- The Nitish Kumar government has decided to impose 13.5 per cent tax on luxury items which includes samosas, salted peanuts, sweets and mosquito repellant among others to mop up additional revenue.

The decision to charge these items more came after the government anticipated a shortfall in revenue because of the ban on liquor from April 1.

Decision to this effect was taken at a meeting of state cabinet presided over by Chief Minister Nitish Kumar.

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.

(With inputs from PTI)

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