Bihar to Implement GIS-Based Cess System for Construction Works

The Bihar government will introduce a GIS-based cess collection system for all construction activities. The initiative, led by the state’s labour resources department, aims to streamline revenue collection and enhance administrative processes. This system is expected to improve efficiencies and accuracy in tax collection and facilitate welfare schemes for workers.

The Bihar government is poised to introduce a Geographic Information System (GIS)-based cess collection system for all construction works across the state—whether government, commercial, or private.

According to the state's labour resources department, the revenue accrued from this cess will be used to offer various benefits to registered building and construction workers. During a recent press conference, labour resources minister Santosh Kumar Singh revealed that Rs 694.80 crore in cess was collected in the fiscal year 2023-24. For 2024-25, the target is set at Rs 1,500 crore, achievable through the new GIS-based system which is already being prepared in Patna, Muzaffarpur, and Gaya, with plans to roll it out statewide.

The minister elaborated that the use of GIS technology will dramatically enhance the efficiency and accuracy of cess collection, allowing for better monitoring and management of construction activities. Cess, a tax on construction projects involving investments up to Rs 10 lakh, will be 1 per cent. Additionally, ex gratia payments for migrant labourers who die due to natural causes or accidents has been increased to Rs 2 lakh, along with additional increases for cases of disability.

(With inputs from agencies.)