Bihar Government to Implement New Cess on House Construction

Patna: The cost of building a house in Bihar is set to rise as the state government enforces a new labor cess on construction projects. According to Labor Resources Minister Santosh Singh, this tax will apply to houses valued at over ₹10 lakh, with a 1% charge on the total cost.

Minister Singh emphasized the importance of this new tax in supporting the welfare of laborers. “Our workers build homes like the Taj Mahal for you. This cess will fund schemes that benefit them and ensure their well-being,” he stated. The revenue generated from this cess will be used to develop programs that aid workers in the construction industry.

The Bihar government has already begun implementing this tax in major cities such as Patna, Gaya, and Muzaffarpur. Authorities are using Geographic Information System (GIS) technology to identify eligible houses for the cess. Minister Singh has set an ambitious target for the collection of the cess, aiming to raise ₹1,500 crore, a significant increase from the current collection of ₹70 crore.

In addition to the labor cess, the state government has also raised the Bihar State Migrant Laborer Accident Grant from ₹10,000 to ₹2 lakh. This is part of the Bihar Shatabdi Unorganized Work Area Workers and Craftsmen Social Security Scheme, aimed at providing better support and security for workers in unorganized sectors.

Minister Singh clarified that there will be no separate mechanism for collecting the cess from private homes, indicating that the government will utilize existing systems to ensure compliance.