Bihar increases DA for govt employees by 7%

The raw tobacco will now be taxed at 4%. Plywood and blackboard will also be cheaper now. Cabinet also has exempted new multiplex from entertainment tax for 5 yrs

The state government employees will have all the reasons to cheers during the coming Durga Puja. The state cabinet on Friday increased Dearness Allowance (DA) of its employees by 7 percent.

"The state cabinet on Friday approved a proposal to increase the DA of the state government employees," said Vijay Prakash, Principal Secretary of Planning and Development Department. It will now be paid at 72 percent, which earlier was at 65 percent. The approval would be applicable since July, 2012. The increase will also benefit pensioners.

However, it will be an addition Rs 576 crores burden for the state exchequer.

Bihar Government also decided to waive off entry tax on newsprint. Prakash stated, "This will directly benefit the thriving newspaper industry of the state. Apart from this, we have also decided to bring down the entry tax on raw tobacco used by the cigarette units of the state," said the senior IAS official. The raw tobacco will now be taxed at 4 percent. Plywood and blackboard will also be cheaper now. Cabinet also has exempted new multiplex from entertainment tax for 5 years.