Co-op banks seek tax removal

HUBLI: Karnataka State Cooperative Bank Federation, Hubli, has urged the central government to take measures to remove 33% income tax imposed on cooperative banks.
Speaking to reporters here on Sunday, Jagadish Gowda, director of the federation said that cooperative banks are providing financial help to a large number of poor in the state at low interest rates.
The state government should exempt cooperative banks from paying 33% income tax to enable these banks to provide more help to the needy, he added.
A delegation led by chairman of the federation, H K Patil met President Pratibha Patil and submitted a memorandum to her seeking exemption of income tax, which was imposed on cooperative banks.
He pointed out that there are around 50,000 cooperative credit societies in the country catering to over 20 million population.
He said one more delegation of the federation will meet Union finance minister Pranab Mukharjee on February 23 and 24 to apprise him of the problems faced by cooperative societies.