Enhanced tax on essential items will lead to Inspector Raj: BJP

Says enhancement of tax on sand from existing 5% to 13.5% will adversely impact the construction industry

The opposition BJP today attacked the Nitish Kumar government for bringing essential commodities under VAT net and alleged that by doing so, the state government was encouraging "Inspector Raj".

Senior BJP leader Sushil Kumar Modi in a statement here said imposition of VAT on saree, clothes and sweets would force traders to take a round of the Commercial Taxes Department and also become victims of exploitation.

By enhancing VAT on sand, the Nitish Kumar government has made an attempt to "break the back of the construction industry," Sushil Modi, who was finance minister in the NDA government in the state, said.

He said by imposing 13.5% tax on sweets priced more than Rs 500 a kg, saree valued more than Rs 2,000 a piece and cloth costing more than Rs 500 a metre, the state government has tried to establish "Inspector Raj".

The BJP leader, who headed the committee on GST earlier, said cloth has been kept out of tax regime across the country and states which tried to realise additional revenue through this mean "met with failure".

Sushil Modi, who is Leader of Opposition in the Legislative Council, said the enhancement of tax on sand from existing 5% to 13.5% would adversely impact the construction industry.

"The enhanced price of sand will yield negative impact on building construction, real estate and making of bridges in the state," he said.

Lamenting the increased tax on computer UPS to 13.5% from existing five%, he said "the Digital India campaign will be hit by this in Bihar."

Sushil Modi demanded immediate withdrawal of the enhanced tax on saree, cloth, sweets, sand, UPS and battery.