The Hindu : Karnataka / Bangalore News : Cess on hotels likely

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Thursday, Nov 05, 2009
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Karnataka

Karnataka - Bangalore

Cess on hotels likely

Special Correspondent

BANGALORE: The Labour Department is considering imposing one or two per cent cess on hotels so as to ensure that social security benefits are provided to hotel/restaurant workers in the unorganised sector.

Labour Minister B.N. Bache Gowda on Wednesday chaired a meeting of the State Board constituted to provide benefits to unorganised workers, who constitute 92 per cent in the State.

He said the department had levied one per cent cess on the construction industry for providing social security benefits to its workers. The department expected to collect Rs. 300 crore annually from the construction industry, he said.

The collected amount would be used for providing medical expenses, education fees, housing and other welfare activities. All those who incurred expenditure above Rs. 10 lakh on constructions had to pay cess to the department, he added.

The Minister said the hotel, restaurant and housekeeping industry hired lakhs of workers across the State and the workers had been denied benefits by the employers. The board decided to constitute a committee to study problems faced by employees in this sector and recommend to the Government the possibility of imposing cess on hotels/restaurants, he said.

The Centre had passed the Social Security Act, 2009, and based on that law the State Government had framed rules for providing benefits to agricultural workers, construction workers, domestic help, garment workers, transport labourers, car/taxi and van drivers.

However, the Centre had not provided funds to the State for implementing the scheme, he said.

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