Implementation of Centre’s new labour codes could lead to fall in building cess collection: Kerala Minister Sivankutty
The implementation of the new labour codes formulated by the Union government by integrating 29 labour laws could lead to a fall in building cess collection, affecting the welfare activities of the Kerala Building Construction Workers Welfare Board, Labour Minister V.Sivankutty told the Assembly on Wednesday. Mr. Sivankutty said that as per the existing norms building cess of 1% cess is levied for buildings with a construction cost of ₹10 lakh and above. However, under the labour codes, cess can be collected only for buildings with construction cost of ₹50 lakh or above, leading to a major shortfall in cess collection thus affecting the disbursal of pension and other benefits for the welfare board members. To address the shortfall in building cess collection, the government has been organising cess adalats since 2021, providing opportunity to building owners to remit the building cess in five instalments.
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