The Bihar government has decided to impose 13.5 per cent tax on luxury items to mop up additional revenue for carrying development work.
The Decision to this effect was taken at a meeting of state cabinet presided over by Chief Minister Nitish Kumar yesterday.
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.
Sale of all kinds 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.
Cosmetic items, perfume and hair oil would also attract 13.5 per cent tax, he added.