Don’t impose tax on cooperative sector: Governor

Belagavi: Governor Vajubhai Vala has urged the government not to collect income tax from the cooperative sector and said they are doing a tremendous job at the grassroots considering which the government should waive taxes being imposed on them.

“Is it possible for the Centre or the state government to provide benefits to a large number of people who are totally dependent on cooperatives for business if cooperatives stop functioning,” he wondered at a programme organised on the occasion of Cooperative Week in Belgaum on Thursday.

Mr Vala said cooperatives functioned without paying any income tax 10 to 11 years ago and the same system should continue in the larger interests of society. He called upon people to put pressure on ministers and leaders to raise the issue of freeing the cooperative sector from income-tax as most of them are working solely for public interest.

“Many schools are run by cooperatives lessening the burden on the government. Cooperatives are running several successful agri and dairy-based industries.

They have been improving  life in rural areas by extending financial support to people to start smaller businesses and industries.

The country will not have people below the poverty line in future if the government supports the cooperative sector,” he said.