States collect Rs 31734 cr construction cess but spend only Rs 6873 Cr
By TIOL News Service
NEW DELHI, MAR 16, 2017: AS much as Rs 31733.76 crore have been collected as construction workers' welfare cess by states and UTs up to 31.12.2016. Out of this sum, Rs. 6872.51 crore has been spent. The information was given by Mr Bandaru Dattatreya , the Minister of State (IC) for Labour and Employment, in written reply to a question in Rajya Sabha today.
The Building and Other Construction Workers' Welfare Cess Act, 1996, provides for levy and collection of cess at such rate not exceeding two per cent but not less than one per cent of the cost of construction as the Central Government may notify. The cess has been levied and being collected at the rate of 1% of the cost of construction as notified by the Central Government in the Official Gazette.
The cess at the above rate is collected by the State Governments/ Union Territory Administrations and utilized for the welfare of the building and other construction workers by the State Building and Other Construction Workers Welfare Boards constituted by the State Governments/Union Territory Administrations under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.
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