Latest news with #KarnatakaFireForceAct
Hindustan Times
6 days ago
- Business
- Hindustan Times
Karnataka to levy 1% fire cess on new high-rises; experts warn of additional tax burden
In a move aimed at enhancing fire safety measures, the Karnataka Cabinet has approved a proposal to introduce a 1% fire cess on newly constructed multi-storey buildings across the state. The decision comes as the Cabinet approved the new Karnataka Fire (Amendment) Bill, 2025, and marked a key update to the Karnataka Fire Force Act, 1964. The Karnataka Cabinet has approved a proposal to introduce a 1% fire cess on newly constructed multi-storey buildings across the state. (Representational Image)(Pexel ) The new levy will apply to both commercial and residential high-rise buildings that are governed by the provisions of the Fire Services Act. "This cess will be collected from high-rise buildings, hospitals, industrial companies and so on," law minister H K Patil told reporters on July 24. He specified that the cess would be compulsory for all eligible buildings, with the obligation to pay falling on either the developers or the property owners. 'The fire cess shall be levied in the form of a surcharge at the rate of one per cent on the property tax of newly constructed multi-storied buildings (high-rise buildings) as defined in section 13 of the Act, with effect from the date of commencement of the Karnataka Fire Force (Amendment) Act, 2023,' the amendment said. According to the state government, the cess would be set at 1% of the property tax and would be used to enhance fire safety systems and improve emergency preparedness in cities and towns. Also Read: What Karnataka's move to exempt small plots from Occupancy Certificates means for Bengaluru's real estate market Will put more burden on homeowners, say experts Experts believe the newly introduced fire cess could lead to a higher financial load for urban property owners, particularly in rapidly developing cities like Bengaluru. However, they also acknowledge that the move has the potential to significantly improve fire safety standards across urban centres. The funds collected through this cess are expected to be channelled towards upgrading fire-fighting equipment, improving response times, and ensuring that high-rise buildings are better equipped to handle emergencies, they said. 'Any additional cost imposed on new constructions will ultimately be transferred to the homebuyers,' said Dhananjaya Padanabhachar, president of the Karnataka Homebuyers' Forum. He pointed out that obtaining fire safety clearances, such as the No Objection Certificate (NOC) and fire compliance certificates, is the legal responsibility of the builder or developer. However, in practice, these costs are rarely absorbed by the builders themselves. 'Whether it's regulatory fees, certification charges, or now the new fire cess, these expenses are usually added to the final price of the property, meaning the burden falls on the end buyer,' he explained. Also Read: Karnataka Cabinet approves regularisation of B-Khata properties in Bengaluru. Here's what it means for property owners Padanabhachar said that while enhancing fire safety is crucial, the government must ensure that homebuyers are not unfairly impacted and that developers remain accountable for meeting safety norms without inflating costs disproportionately. "Fire safety regulations for high-rise buildings are already stringent, covering everything from the initial NoC to final implementation. The proposed additional cess for the fire department will further add to the existing financial commitment of consumers, such as the solid waste management cess, the proposed 1% hike in stamp duty and rising electricity and water charges," Nesara BS, chairman of Concorde, said. He explained that the living costs are climbing steadily, making it increasingly unaffordable for the home buyer. "Bengaluru risks becoming one of the most expensive cities in India. We need to remain mindful of how these escalating costs of development are becoming an additional expense to the homebuyer"
Deccan Herald
6 days ago
- General
- Deccan Herald
Karnataka: Bill proposes to levy 1% fire cess on new high-rise buildings
Structures with a height of over 21 metres are considered high-rise buildings. The Karnataka Fire Force (Amendment) Bill, 2025, seeks to amend section 15 of the Karnataka Fire Force Act, 1964.
The Hindu
7 days ago
- Business
- The Hindu
Karnataka decides to levy 1% fire cess on newly constructed multi-storey buildings
The State Cabinet on Thursday decided to levy 1% fire cess to the property tax of newly constructed multi-storey buildings in Karnataka. The Chief Minister had announced in the 2024-25 Budget speech that 'according to the Karnataka Fire Force Act, 1964, to increase efficiency in the Fire and Emergency Department, 1% fire cess will be levied to the property tax of multi-storey buildings which will be newly constructed in the State.' The Karnataka Fire Force (Amendment) Bill, 2025, will be tabled in the Monsoon Session of the State legislature that would commence on August 11, to introduce the new fire cess. To enhance the efficiency of the Fire and Emergency Services Department, Section (15) of the Karnataka Fire Force Act, 1964, would be amended to levy 1% fire cess along with the property tax on multi-storey buildings which would be newly constructed in the State, Law and Parliamentary Affairs Minister H.K, Patil told reporters.
Indian Express
7 days ago
- Business
- Indian Express
Karnataka Cabinet okays fire cess on new multi-storey buildings
The Karnataka Cabinet on Thursday approved the Karnataka Fire (Amendment) Bill, 2025, which permits the state to levy a fire cess of 1 per cent on newly constructed multi-storey buildings. Law Minister H K Patil announced that Section 15 of the Karnataka Fire Force Act, 1964, will be amended to include this cess, which would apply to commercial complexes, hospitals, educational institutions, industrial units, and residential apartments. Patil explained that the cess will be calculated at 1 per cent of the property tax amount and collected to strengthen fire safety infrastructure and preparedness in urban areas. 'All institutions and structures to which the Fire Act is applicable will now be liable to pay this cess,' he said. He clarified that the cess would be mandatory for all qualifying properties, and the responsibility for payment lies with the builders or property owners. The Cabinet has also decided to introduce a resolution to convert the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Ordinance, 2025, into a Bill in the upcoming Assembly session. The ordinance, originally promulgated on May 30, aims to ensure social security and welfare measures for gig economy workers. The state estimates that approximately 2.3 lakh full-time and part-time delivery workers are currently active across various platforms in Karnataka. The state will soon set up a Payment and Welfare Fee Verification System (PWFVS) to digitally track every transaction and welfare fee deduction made towards gig workers' social security. Under the proposed rules, aggregators must calculate and remit a welfare fee ranging from 1 per cent to 5 per cent of each payout made to a gig worker. These contributions are to be deposited into a government-managed welfare fund every quarter through RBI-approved payment modes. The Karnataka State Cabinet has also sanctioned the establishment of a Centre of Excellence (CoE) in Space Technology in Bengaluru, allocating a budget of Rs 10 crore over five years. The CoE will be set up as a Section 8 company under the Companies Act, 2013. The Satellite Communication Industry Association (SIA-India) will serve as the implementing partner and has been granted an exemption under Section 4(g) of the Karnataka Transparency in Public Procurement Act, 1999, Patil said. The decision addresses the critical shortage of testing facilities, as Indian Space Research Organisation (Isro), Defence Research and Development Organisation (DRDO), and other government centers are currently operating at full capacity, prioritising their missions. With the startup sector producing around 30 testable prototypes monthly and facing a significant demand for testing infrastructure, the CoE aims to bridge the gap and support innovation in the space technology ecosystem. The Cabinet has also granted administrative approval for establishing a peripheral cancer treatment unit under the Kidwai Memorial Institute at Rajiv Gandhi Super Specialty Hospital in Raichur. The estimated cost of the initiative is Rs 50 crore, which includes Rs 20 crore for civil works and Rs 30 crore for equipment. It will be funded by the Kalyana Karnataka Region Development Board. Additionally, the government has approved the establishment of Indira Gandhi Children's Health Institute in Bengaluru, which will feature a 450-bed hospital. The project is estimated to cost Rs 62 crore for medical equipment, furniture, and other requirements.
