States collect Rs 27,000 crore construction cess; spend Rs 5,600 crore

As per news published, the States and Union Territories, which have collected Rs 26,962.18 crore as construction cess, had spent only Rs 5,684.8 crore till March end this year, Labour Minister Bandaru Dattatreya said on Wednesday. In a written reply to the Rajya Sabha, the minister further said: “The responsibility of collecting cess and its utilisation for welfare of workers lies with the respective state governments/UT administrations and state Building and other Construction Workers’ Welfare boards.”

Under the Building and Other Construction Workers’ Welfare Cess Act 1996, realty developers are required to pay cess of 1 per cent of the total cost of construction incurred by the employer. The cess is levied for augmenting the resources of the Building and Other Constructions Workers Welfare Board.Concerned over poor implementation of the Act, Dattatreya has been asking the states to ensure that States Advisory Committees under the law meet once every three months.

Source: ET Realty , The Economic Times