“In order to provide a level playing field between cooperatives and companies, I propose to reduce this rate (MAT) for cooperatives also by 15%,” the Finance Minister said.
Finance Minister Nirmala Sitharaman on February 1 said that the government proposes to reduce the Minimum Alternate Tax (MAT) for cooperatives to 15% from the existing 18.5 per cent, which is at par with private companies.
Presented Budget 2022-23 in Lok SabhaHe said that the government has also proposed to reduce the surcharge to 7% from the existing 12% on cooperatives whose total income exceeds ₹1 crore to ₹10 crore.
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“In order to provide a level playing field between cooperatives and companies, I propose to reduce this rate (MAT) for cooperatives also by 15%,” the Finance Minister said.
He said that at present cooperative societies have to pay MAT at the rate of 18.5 per cent, while companies have to pay at the rate of 15%.
Reducing the surcharge on cooperatives to 7% from the current 12%, he said the reduction in surcharge is for those whose total income is more than ₹1 crore up to ₹10 crore.
“This will help in increasing the income of the co-operative societies and its members, who are mostly from rural and farming communities,” he said.
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