Nagpur: The city’s cooperative sector has slashed Finance Minister Nirmala Sitharaman’s ‘Alternate Minimum Tax’ and has appreciated the move to reduce the tax by about 15%, So that it can be brought at par with the corporates. Those working in this sector have also appreciated the decision to reduce the surcharge on their society from about 12% to 7% for people earning between Rs 1 crore and Rs 10 crore.
According to him, the announcements of the Center in Tuesday’s budget will also go a long way in increasing the income of cooperative societies and all their members. Most of whom are from rural and farming communities.
Kailash Agrawal, President of Vidarbha Urban Bank Cooperative Federation, has said that the booster of FM was very important for the cooperative sector, Because he was going through a lot of difficulties. Earlier there was no tax on co-operative banks at all. When they were taxed, Then he was only a little more.
Vidarbha Industries Association (VIA) President Suresh Rathi has also said that the cooperative sector of the region should make the most of this golden opportunity.
Take supervisory action
He has said that since the Vidarbha region is mostly agro-agriculture Which is mainly related to cooperative banks and societies only, FM’s announcement came as a shot for the region and it will also help a lot in flourishing. There are tremendous opportunities for development in this field, Corporate’s corporate presence is very less as compared to Western Maharashtra.
Kailash has also said that right now the government of Maharashtra should take the signal from the Center. And to help cooperative banks, a fund should be created to meet the Capital Adequacy Ratio (CRAR).
He has said that if this ratio is less then cooperative banks become very ill. Then after this, the Reserve Bank of India is heavily compelled to take supervisory action. And all this can be avoided if the state comes up with a fund to revive the ailing banks. This will also help a lot in the development of this sector and the youth will get more employment.