Finance Bill passed by assembly

PATNA: The state assembly on Monday passed the Bihar Finance Bill, 2011, to give legal sanction to the tax proposals made earlier by deputy CM Sushil Kumar Modi in his 2011-12 budget. The proposed tax hikes sought to mop up an additional Rs 450 crore.
The state government had increased luxury tax by 10% on the use of hotels and halls for holding cultural functions and programmes.Besides, sales tax charged on the purchase of two wheelers, cars, SUVs and other light vehicles, too, had been increased from the existing three to five per cent to net revenue worth Rs 40 crore.
Moreover, tax rates on heavy vehicles were also rationalised, while the registration procedure adopted for heavy vehicles was simplified to ensure increased registration of such vehicles in the state.
“The revenue netted through tax increase would help the government in further improving its resource base to take up and support developmental and welfare measures,” Modi said while presenting the Bill for unanimous passage by the House, which passed it by voice vote.
The taxes had been increased from three to five per cent on Schedule-3 items that included organic fertiliser, cycles, hair oil, paper etc. On the other hand, coal, iron, cotton, oilseeds, sugar etc. had been spared from the tax hike.
Similarly, the tax on schedule-4 items like motor vehicles, TV, fridge, zarda, cigarettes, cement, soaps, detergent, toothpaste, toothbrush, electric home appliances and furniture was increased from 12.5 to 13.5%. Paddy, rice, wheat, flour, maida, sooji and foodgrains were made tax-free. Earlier, tax charged on these items was one per cent.
The House also passed the Penal Code (Bihar Amendment) Bill, 2011, to make the offence under Section 353 bailable. As amended by the Centre in 2005, the offence under Section 353 of the Indian Penal Code was non-bailable. CM Nitish Kumar said that his government felt it necessary to amend the Section 353 into bailable offence to strengthen democratic roots of people. “People have right to protest against certain matters, but their offence, under Section 353, was treated as non-bailable offence,” Nitish said, adding: “We are the first state to make it a bailable offence. May be other states would also follow it, but the amendment passed by the House would be sent to the Delhi for Presidential assent.”
Yet another Bill passed by the House passed on Monday was Bihar Prashashnik Nyayadhikaran Vidheyak (Bihar Administrative Tribunal Bill), 2011. After it is made into an Act, it would facilitate provision of judicial forum to officials of the Bihar Administrative Services (BAS) for the resolution of their service-related grievances and matters. Officials of the All India Services and central undertakings would not be covered by this tribunal.