February 20, 2002
'27'
EXEMPT LABOUR COOPS FROM INCOME TAX AND DUAL SALES TAX : ADVISORY COUNCIL
The Union Ministry of Agriculture has advised all Central Government agencies and State Governments to issue necessary notifications for giving preferential treatments in awarding works to Labour Cooperatives. However, many of the States as well as Central Govt Departments are yet to notify the recommendations of the Agriculture Ministry. This was revealed at the meeting of the reconstituted National Advisory Council on Labour Cooperatives here today. Addressing the meeting, the Minister of State for Agriculture, Shri Hukum Deo Narayan Yadav said that the scheme under which the Centre was providing financial assistance to the Labour Cooperatives to revitalise them has now been transferred to the States as per the recommendations of the National Development Council (NDC). However Central Government is regularly providing financial assistance to the labour cooperatives for their skill development. The Minister said that the construction industry occupies the second largest place after agriculture in providing employment. Yet, unorganised labour sector and labour cooperatives continue to be deprived of this opportunity as bulk of the employment in the civil construction work is done by big labour contractors who continue to exploit the labour force, he added.
The Chairman of the National Federation of Labour Cooperatives, Shri Jagjit Singh demanded that the personal Accident Insurance Scheme for the implementation of which the Ministry had taken a decision and money was allotted during the IXth plan should be made operational immediately. He informed the meeting that the Federation has suggested for formation labour cooperatives in the tribal dominated states of the North-East as well as Chattishgarh, Orissa and Vidharbha as there is lot of unemployment in those areas.
The meeting recommended for exempting the labour cooperative from income tax and payment of dual sales tax.
At present, there are about 33000 labour cooperatives in the country consisting of about 20 lakh members. The labour cooperative movement in some of the States like Punjab, Maharashtra, Haryana, Gujarat, Andhra Pradesh had gained momentum as a result of Government support. The labour cooperative movement in general has not made much headway in other states.