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Mah to levy cess on construction


In keeping with a Central legislation, the Maharashtra government plans to levy a cess on all public and private constructions in the state costing over Rs10 lakh. The move is expected to generate approximately Rs2,000 crore annually for rolling out schemes for construction labourers.
“The cess is likely to be 1% of total cost of construction of various projects including buildings, real estate, bridges, factories, roads and flyovers,” state labour minister Nawab Malik said. The welfare measures include insurance, healthcare and education with the aim of providing security and ensuring well-being of construction labourers.
Malik added that the measures have already been implemented in other states including Punjab, Haryana and Chhattisgarh and Maharashtra will follow suit while Kerala is in the process of implementing it. He said the projects to be implemented with this money would be decided by the board set up for the purpose.
“The Board will have representation from stakeholders,” Malik said adding, no construction activity would take off unless the levy was paid. The government was also working on a scheme to help around eight lakh powerloom workers in the state, he stated.

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June 2020
10 Jun 2020