Co-operatives(Sahakari Sansthan) to get facility in tax

Government is sorting out the co-operative organizations on the basis of the income they generate, and is about to impose tax accordingly. Co-operatives have been asking the tax discount for a long time. Narayan Prasad Pidari - the deputy registrar of the co-operative division, said "from the next fiscal year, co-operatives will be classified on account of their income, and low tax will be imposed to low income generating companies". He added," Looking at the deposit collection, loan distribution and income, the classifications will be made by the government. Furthermore, the companies with minimal profit might enjoy the facility of total exemption or discount in tax. However, companies with high profit would not get access to such benefits". More than 10000 co-operatives are in operation at the moment and 21% tax is levied on them.

The merger companies to issue right shares

Among the five amalgamating companies (Siddhartha Finance Limited, Birgunj Finance Ltd, Butwal Finance Ltd, Himchuli Bikash Bank Ltd and Maha Laxmi Finance Ltd.), three are about to issue right shares to increase their capital. Special meeting of these companies held on 30th May, 2008 to decide on this matter. Siddhartha Finance Limited is giving 1:5 right share followed by Butwal Finance Ltd and Maha Laxmi Finance Ltd. Butwal finance is about to issue 1:4.75 right shares while Maha Laxmi is offering 1:4 in the near future. The company has decided upon this agenda so as to increase the share capital to 40 million. Within 7 months, the company is completing all the necessary procedures and capital collections as well. Along with these three organizations, Himchuli Bikash Bank Ltd and Birgunj Finance Ltd are joining hands to form a commercial bankn with 2 billion share capital.