Bihar state slaps ‘luxury’ tax on samosas

Bihar government has made a decision to impose 13.5% luxury tax on samosas along with candies priced above Rs 500 a kg and mosquito repellant as well.

But as a demonstration that the state government is not all about raising tax revenue, the same state cabinet meeting chose to waive entertainment tax on the forthcoming Bollywood movie Chalk N Duster.

Similarly, shell out more for those delicious dry fruits or if you are a connoisseur of candies priced at more than Rs 500 per kg.

The administration in India’s northern Bihar state has included the humble snack on a list of 23 items that will be taxed at 13.5%, the NDTV news website reports.

Principal secretary, Cabinet, Brajesh Mehrotra said, “Salty packed items like samosa, kachori and namkin are among those items on which additional Value-Added Tax of 13.5 per cent has been imposed”.

A similar tax rate was also applied to auto parts, as well as cosmetics, perfume/cologne and hair oil.

The state generated around Rs 1,615 crore as excise duty from sale of country liquor in the financial year 2014-15.

One of India’s states, Bihar, has announced to impose a “luxury tax” on samosas – sparking widespread outrage.

The Nitish Kumar cabinet also chose 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.