JAIPUR: Developers building housing strategies for economically weaker sections (EWS) and lower income groups (LIG) might not need to pay the labor cess.
Condition’s labour section is mulling a proposal to waive off the cess, which will be 1 percent of the entire project cost because it would offer relief to the buyers.
The draft proposal has received a nod in the labour ministry, Tika Ram and continues to be forwarded to the department. In accordance with the estimation, you will find 175 to 200 jobs of cheap housing in the country, which have approximately 1 lakh housing units. The transfer will offer relief to those buyers who will buy plots in forthcoming schemes as price will be decreased.
An official stated,”Around 60 million square feet of structure needs to be performed in the accepted ongoing projects. The building cost is about Rs 7,200 crore. Labor cess is payable at 1 percent. With this foundation, the cess numbers to Rs 7.2 crore. This amount has been suggested to be reduced at home expenses.”
Programmers believe the movement will immediately benefit the LIG and EWS class. Rajasthan CREDAI chairman Gopal Das Gupta stated,”The need was put forward from the programmers to fend off the cess to gain those classes. We’d welcome the movement as this was added burden on poor”
Vinay Joshi, chairman, Rajasthan Affordable Housing Developers Association, stated,”In our representation, we’ve clarified the government’s goal is to benefit from EWS and LIG. The cess shouldn’t be enforced with this class. Our requirement was believed and petition was forwarded to the Centre.” The official in the civic bodies consider that this would also promote the programmers as it might provide small aid in investment.