Karnataka Greenlights 1% Fire Cess on High-Rises, Builders Caution Price Rise

Karnataka Cabinet greenlights a 1% fire cess on new high-rise buildings, prompting builders to warn of potential price hikes. The Karnataka Cabinet accepted the Fire Amendment Bill, 2025. It permits the whole state to charge a fire cess of about 1% on newly built high rise buildings.

H K Patil, who is the Law Minister has now announced that the Section 15 of the Fire Force Act will also be reviewed to include this cess. It will apply to all schools, hospitals, colleges, industrial units, commercial buildings, and flats.

Patil explained that the cess will be only 1% of the total property tax amount. It is collected to support all the fire safety buildings in urban areas of the city. All buildings to which the Fire Act is valid must pay this fire cess. He stated that the cess would be essential for all properties, and the payment must be done by builders or property owners.

The Cabinet has planned to introduce a resolution to change the Platform Based Gig Workers Ordinance, into a Bill in the Assembly session. It aims to give full social security for gig workers. The state guesses that 2.3 lakh part time and full time workers are currently active in the state.

The state will set up a Payment & Welfare Fee Verification to digitally track each transaction. Under the new rules, a welfare fee that ranges from 1% to 5% of each payout must be made to any gig worker. It must be deposited to a welfare fund through approved payment modes in each quarter.

The State Cabinet has also authorized the starting of Centre of Excellence in Space in Bengaluru city. A budget of about Rs. 10 Crores was allocated over five years. SIA India will serve as the partner and it is granted an exclusion under Section 4G of the Act.

The Cabinet also approved the starting of a cancer treatment unit in the area of Raichur. The estimated cost is Rs 50 crore. It will include Rs. 20 Crores for civil works and Rs. 30 Crores for equipment.

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