Kerala Meeting to maneuver decision in opposition to transfer to impose tax on main milk co-ops

Thiruvananthapuram: Opposing the Union Authorities’s transfer to impose Earnings Tax on main milk co-operatives, Kerala Animal Husbandry and Dairy Improvement Minister J Chinchurani on Tuesday stated a decision in opposition to the proposal can be introduced within the State Meeting, which might be adopted unanimously with the assist of the opposition.

The Minister stated the Centre’s transfer was “completely unacceptable” and the state would put up a stiff resistance in opposition to the proposal until it’s withdrawn, she stated talking after lighting the “protest flame” at a gathering organised right here by the Kerala Co-operative Milk Advertising Federation (KCMMF), popularly referred to as Milma, in opposition to the transfer.


“The Centre has solid an enormous burden on the dairy farmers who belong to the bottom rung of the society. This blow has come at a time when they’re struggling to maintain the dairy sector amid extreme hardships attributable to the Covid-19 pandemic. Kerala will proceed to oppose the choice, until it’s rolled again,” the Minister stated.

Chinchurani stated she had already written to the Union Finance Minister Nirmala Sitharaman demanding withdrawal of the choice, declaring its grim fallout on the dairy sector. The difficulty was additionally raised on the assembly of dairy growth ministers convened by the Centre.


The State Authorities has put in place insurance policies and programmes to assist the dairy farmers in these making an attempt instances.

As a co-operative community whose main dedication is in direction of dairy farmers, Milma, along with its regional unions, has been following a coverage of isolating the majority of its income for the welfare of the farmers by implementing pension, well being and training schemes, she stated.

Presiding over the protest on the Martyrs’ Column within the metropolis, Chief of Opposition within the State Meeting V D Satheesan emphasised the necessity to stand collectively, setting apart political variations, to counter the Centre’s transfer.


The Centre has unilaterally made this determination with out having any session with the folks and organisations engaged within the dairy sector. This situation can be raised within the State Meeting within the subsequent session as a severe matter, Satheesan added.

Ok S Mani, Chairman, Milma, stated the choice to impose tax on Anand mannequin main co-operatives would deal a crippling blow to the co-operative dairy sector.

“That is fairly an ill-advised and unjustified transfer which might solely spoil the dairy farmers, at a time when they’re reeling beneath the pandemic-induced disaster,” Mani stated.


The Centre had acted on this matter with out trying into the realities of the dairy sector or making correct enquiries or research, stated N Bhasurangan, Convener, Administrative Committee, Thiruvananthapuram Regional Co-operative Milk Producers Union.

Comparable protest conferences have been held throughout the state, rallying dairy farmers and members of co-operative societies, demanding rollback of the proposal. All MPs from the state have been additionally urged to deliver strain on the Centre to surrender the transfer.

Milma has voiced severe concern over the proposal to impose Earnings Tax on the Anand mannequin main milk co-operative societies with an annual turnover of over Rs 50 lakh.


As per the round No 13/2021 of the Board of Direct Taxes dated June 30, 2021, beneath the rules of the Part 194 Q of the Earnings Tax Act-1961 main, milk co-operatives additionally come beneath the purview of earnings tax.

Aside from procurement and distribution of milk, the earnings from all allied merchandise together with cattle feed gross sales can be taken under consideration in calculating the tax.

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