Centre promises alternative to cess for funding labour schemes

Ravi S Singh

Tribune News Service

New Delhi, June 28

The Centre will come up with an alternative arrangement for funding of labour welfare schemes following abolition of cess — its main source — in the proposed GST regime.

This was assured by Principal Secretary, Prime Minister Office (PMO), Nripendra Misra while addressing concerns of BMS, a central trade union affiliated with the RSS, during a meeting of its delegation. The delegation led by BMS national president CK Saji Narayanan. Narayanan quoted Misra saying: “A detailed clarification will be given by the government in this regard soon.”

Cess-based schemes are applicable in various sectors, including building and other constructions, beedi, cinema and minerals and ores. The bulk of the workers related to the schemes are from building and construction, accounting for more than 2.5 crore workforce.

The welfare schemes concern medicine and health facilities, education of their children and other exigencies. They are funded only through the cess collected by the government. But they will be scrapped in the one tax structure defining the GST dispensation. Misra stated the government would address the issue on a priority basis, said Narayanan.