Exempt cooperative sector from taxes: State to Centre

CHENNAI: In a significant development, the Tamil Nadu government on Monday urged the Centre to exempt cooperative societies from Goods and Services Tax (GST), income tax, and Tax Deducted at Source (TDS) deductions.

This move aims to strengthen the cooperative sector in the State, promoting its growth and development.

State Minister for Cooperation, KR Periyakaruppan, met with Union Minister for Home Affairs and Cooperation, Amit Shah, in New Delhi and submitted a memorandum outlining key demands.

According to Periyakaruppan, the representation emphasised the need for a slew of measures to promote the growth and development of cooperatives in Tamil Nadu.

Periyakaruppan urged Shah to issue directions to the National Bank for Agriculture and Rural Development (NABARD) to increase the concessional refinancing provided to cooperatives in Tamil Nadu.

Furthermore, Periyakaruppan urged the Union Minister to direct the National Cooperative Development Corporation (NCDC) to provide loans to cooperative societies in the State at reasonable interest rates.

Moreover, Periyakaruppan sought a separate refinancing facility from NABARD, exclusively for KCC-AH loans, to provide an additional source of funding for farmers, helping them to meet their credit requirements.

Finally, the State Minister urged the Union Government to issue Net Banking Services licenses to cooperative banks in the state expeditiously, to enable these banks to offer online banking services, enhancing the convenience and accessibility of their services.

Senior officials, including J Radhakrishnan and N Subbaiyan, were present during the meeting.