Assembly passes Bihar Value Added Tax (Amendment), Bill, 2016

Patna,(BiharTimes): Amidst opposition from the NDA members, Bihar Assembly on Tuesday passed the Bihar Value Added Tax ((Amendment), Bill, 2016.

The Bill proposes one per cent hike––from five to six per cent––in VAT rate on various goods. Besides, there will be half a per cent increase of goods not covered under the Bihar VAT Act, 2005––from 14.5 per cent to 15 per cent.

In all eight legislations were tabled in the Assembly. Chief minister Nitish Kumar introduced the Bihar Lokayukta (Amendment) Bill, 2016 and Bihar Law Repeal Act, 2016.

Seven of the Bills were passed unanimously.

However, the Bihar VAT (Amendment) Bill, 2016 was passed by a majority vote with 151 votes in favour and 51 against it, after the BJP members pressed for division of votes.

Commercial Taxes Minister Bijendra Prasad Yadav, while defending the tax hike proposal, said that the state government required additional funds to meet shortfall caused by enforcement of total prohibition in Bihar and also for implementation of the salary hike to the employees in view of implementation of the Seventh Pay Report.

The BJP members alleged that the hike in taxes will put more burden on the poor people who will have to pay more to purchase various goods and for using services.

The Bihar Motor Vehicles Taxation (Amendment) Bill, 2016, moved by the Transport Minister Chandrika Rai and aimed at levying more additional taxes on purchase of vehicle and licence fees on various vehicles was also passed by the Lower House.

Replying to a debate Rai said that additional taxes have been proposed to collect funds for putting in place road safety mechanism to prevent fatalities in road accident.

The Bihar Lokayukta (Amendment) Bill, 2016 proposed to extend the tenure of the incumbent Lokayukta to 70 years or till selection of the successor to the post by a committee under the legislative council chairperson.