'Exempt partnership firms from agri I-T'

Karnataka Planters’ Association (KPA) has urged the state government to exempt partnership firms from paying agricultural income tax.

Addressing the KPA’ s 50th annual conference, here on Wednesday, C M Pemmaiah, chairman, KPA said, “The state government should exempt agricultural plantations, especially partnership firms, except corporate companies from the provisions of agricultural income tax.”

“Partnership firms in the plantation belt generally consists of family members who have formed partnership concerns for the sake of convenience for easy and convenient management,” he added.

Recently, the Karnataka government had exempted individuals but not partnership firms or corporate companies from payment of agricultural income tax and reduced the rate of tax for firms and corporate bodies.

KPA has cited a few reasons for repealing the act such as the falling coffee prices, increasing production costs, unserviceable debts, recurring diseases and crop damage due to excess or deficient rains.

According to Ajoy Thipaiah, vice chairman, KPA, “The Union Budget ‘08 exempted planters from agricultural income tax and our neighbouring state Tamil Nadu too repealed it recently. Kerala too has exempted all kinds of assessees from payment of agricultural income tax, except the corporates.”

C T Ravi, the MLA representing Chikmagalur, said, “Agricultural income tax in plantation sector needs to be corrected as it impacts the industry’s sustenance and affects job creation in the plantation districts.”

Pemmaiah said, in addi-tion to agricultural income tax issue, the plantation sector is also affected by a severe shortage of fertiliser, particularly complex fertiliser and urea.

“We request the state government to help us set aside sufficient fertiliser for growers as coffee is the backbone of Karnataka realising revenue, labour and valuable foreign exchange for the country and any shortage of fertiliser will affect the whole plantation economy,” he added.

To deal with labour shortages in the plantation sector, the KPA has asked the Cenrtre, state governments and commodity boards to introduce a subsidy scheme for mechanisation in plantation to boost productivity and offset the difficulties faced by the industry.