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AMT Exemption to Boost Investment in Dairy Sector

03 February 2020

INDIA - Proposed reduction of tax on cooperative societies to 22 percent plus surcharge and cess as well as exemption from Alternative Minimum Tax (AMT) will help increase investments in the dairy sector. The relief to cooperatives has come at a time when milk processing capacity is being doubled in the country.

The cooperative sector proposals will also lead to more creation of jobs and remunerative prices to farmers. Gujarat Cooperative Milk Marketing Federation, India's largest cooperative that markets Amul brand, along with 18 district level milk unions will be able to save Rs 15 crore on account of the reduction in tax and AMT exemption.

Cooperatives had demanded level playing field by seeking lower tax on the lines of reduced corporate tax offered to companies. "This discrepancy has been eliminated. Farmers will now try to earn more profits from animal husbandry," said R S Sodhi, managing director, GCMMF.

Gujarat’s dairy cooperatives have 36 lakh farmers as their members and they are currently paying nearly Rs 150 crore as taxes. Both GCMMF and the National Dairy Development Board (NDDB) had demanded reduction in tax ahead of the budget.

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Source: The Times of India

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