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State opposes direct tax on co-operative sector
November, 22nd 2012

The state government on Wednesday opposed the Centre's move to bring the cooperative sector under direct tax net.

Pointing to the initiatives taken up by the cooperative sector in poverty alleviation and unemployment, co-operation minister B J Puttaswamy said it would be unfair to tax such institutions.

"It is not right to tax cooperative institutions which are working in the social sector. We're opposing this move at the Centre," he said at the All-India Cooperative Week celebration here.

Leaders in the cooperative sector are attending the week-long 59 th cooperative week celebration.

The minister asked the organizers to adopt a resolution, which his department will forward to the Union government.

Deputy chief minister R Ashoka, who inaugurated the celebrations, said it was difficult to sustain the cooperative societies and pointed out that some 70 per cent of these societies close down within years after they are set up.

The cooperation sector should be beware of this trend, he stated.

 
 
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