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AP Govt to impose 1% cess on construction
October, 06th 2007
The construction activity in the State will cost more soon. The State Government will impose 1 per cent cess on construction and hammering out modalities of its collection.

All Central and State Government Departments, public undertakings, commercial constructions and individual residential constructions above Rs 10 lakh will have to pay the tax. A decision to this effect was taken at a high-level review meeting chaired by the Chief Minister, Dr Y.S. Rajasekhara Reddy, here.

Health insurance

The proceeds from the cess would be used to provide health insurance to the construction workers and to implement social security and welfare measures for this unorganised sector, according to a release.

The Chief Minister had directed the Labour Department to work out the modalities pertaining to the deduction of the cess, its accounting and synchronisation with the ongoing Arogyasri scheme in the State, among other issues.

The Labour Department had put forth the proposal that workers who worked for more than 90 days during the preceding 12 months should register themselves with the Construction Workers Welfare Board as a beneficiary on payment of Rs 50 and Rs 12 as registration and annual fee respectively. They would be given identity cards. There are about 55 lakh construction workers in the State.

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