Samosa Tax - Luxury Tax on popular snacks like Samosas and Kachoris in Bihar

[saanvi]

Luxury Tax on popular snacks like Samosas and Kachoris in Bihar. Chief minister Nitish Kumar has sprung another surprise and redefined luxury.

In a country where the word has traditionally been used for air-conditioners, limousines and five-star hotel stays, Nitishnomics has expanded the meaning of luxury to include snacks such as samosas and kachoris.

To raise additional revenue, the Bihar government on Tuesday decided to impose a value added tax of 13.5% on a host of items counted as luxury products. These include sweets costing more than Rs.500 a kg, salted snacks like samosas, kachoris and namkeens costing more than Rs.600 per kg, cosmetics, packaged foods, scents and hair oil costing more than Rs.2,000 and on items like inverters, auto parts, industrial cables and transformers. Sand will also be taxed at 13.5%.