Over 270 urban cooperative banks (UCBs) and district cooperative banks (DCBs) in Gujarat will observe a day’s strike on Thursday, December 8, 2011, demanding income tax exemption for the cooperative banks, which was in force till 2006.
Currently, cooperative banks are liable to pay a flat 30 per cent income tax on their earnings. The income tax waiver for cooperative banks, which was in force since independence, was removed in 2006-07 and the amendment to Finance Act, 2006 brought them under the income tax net by the-then congress-led UPA government.
Post amendment, earnings of UCBs, DCCBs and state cooperative banks (SCBs) have become taxable with effect from the financial year 2006-07.
“It is sad that Sonia Gandhi’s congress has brought cooperative banks under the income tax net. They (coop banks) were given income tax waiver since Jawaharlal Nehru’s regime, but UPA government has imposed income tax on it. All of Gujarat’s cooperative banks will remain closed tomorrow as a mark of protest of the income tax,” said Dileep Sanghani, minister for agriculture and cooperatives, government of Gujarat, while endorsing the strike call.