by reciprocal arrangement with Star of Mysore
Bangalore, June 6: The State Government has come out with a proposal to tax the construction sector wherein, the new constructions, be it residential, Government, semi-Government or even private institutional ones, will have to pay one per cent tax if the building's worth is more than Rs. 10 lakh.
Karnataka will be the second State, after Kerala, to implement this tax under 'Building and Other Construction Workers (Employment Regulation and Service Conditions) Act.' It was implemented in 1996 by the Centre.
The State Government has drafted a Bill in this regard which will be passed in about three months time.
Welfare Fund
The tax of one per cent collected by the building owners will be deposited in a Welfare Fund created for the construction workers of not only from the State but also from other States who come in thousands as labourers.
The workers, who are registered with the Welfare Fund, will get medical treatment facilities, financial assistance for marriage of such workers' children, educational opportunities, pension and other benefits. Workers interested in registering their names for the scheme must be aged between 18 and 60 years of age. They must have had worked for a minimum of five years.
Such workers must enroll with the Labour Department by paying a fee of Rs. 25 in the first month and Rs. 20 each in the next three months before getting the membership. They must also obtain a certificate of proof from the owners, establishments, Trade Unions or Department of Labour while applying for membership.
This new system will apply even to the contractors who avail tenders for construction of Government buildings. The State has about 15 lakh construction workers and the Government has already allocated Rs. 1 crore for this unique scheme.
Benefits
The pension for each worker will be Rs. 150 per month (hike of Rs. 10 once in five years); another Rs. 150 pension for physically challenged; Rs. 5,000 loan facility to buy furniture; Rs. 50,000 as housing loan; Rs. 2,000 as maternity benefit (for two children); Rs. 1,000 for marriage of workers' children (for two); Rs. 10,000 as medical facility and Rs. 2,000 for funeral expenses.
Whatever the Government's honest intentions are, the new system may stumble midway or might create another problem, as the Government has not touched upon one aspect — a sizeable number of construction workers are from neighbouring States like Tamil Nadu and Andhra Pradesh who are brought here by the contractors on a temporary basis.
The question is, how will the benefits of the Welfare Fund may really help the ones who does not have a permanent address here?
The contractors may create an address and enroll such temporary outstation workers as members of this scheme. But once such workers go back to their States, what happens to the benefits that are provided in their names? It may lead to glaring violation of the validity of the scheme itself or the State's money will go outside.
Though these aspects have not been touched upon nor any discussion held in this regard, the Government will be left with no option to set right this anomaly as the State has adopted a rule that is already implemented by the Centre. It will be a tough role for the Government to distinguish between the local workers and others.