The government has decided to impose a 13.5 % value added tax on such items to make up the revenue shortfall because of the liquor ban.

Anticipating a revenue shortfall because of the ban on liquor from April 1, the Bihar government has decided to impose a 13.5 per cent value added tax on such items as samosa, salted peanuts, sweets, mosquito repellents and a few branded snacks to make up the loss.

The decision was taken at a meeting of the Cabinet, presided over by Chief Minister Nitish Kumar, on Tuesday.

Brajesh Mehrotra, Principal Secretary, Cabinet Coordination Department, told journalists a similar tax would be imposed on inverters, battery parts, UPS, cosmetic stuffs, scent and hair oil.

“Cloths costing Rs. 500 a meter or more and saris valued above Rs. 2,000 will invite 5 per cent of value added tax,” he said.

But the Cabinet decided to waive entertainment tax on Chalk N Duster, a film made by Jayant Gilatkar, for sending out a strong message about the reverence and love for the over-worked but under-paid teachers.