The Karnataka government has opposed the Congress-led UPA coalition's move to bring the co-operative sector under direct tax net.

Addressing attendees of the 59th All-India Cooperative Week, co-operation minister B J Puttaswamy said that it would be not be fair to levy direct tax on institutions of the co-operative sector because such institutions are working in the social sector.

Speaking on the topic, Puttaswamy said, "It is not right to tax cooperative institutions which are working in the social sector. We're opposing this move at the Centre."

The minister pointed to the initiatives taken up by the cooperative sector institutions to alleviate poverty and unemployment.

He urged the organizers and leaders in the co-operative sector to adopt a resolution, which his ministry will forward to the government at the Centre.

Karnataka Deputy Chief Minister R Ashoka also said that it was becoming more and more difficult to sustain the co-operative societies and called attention to that fact that nearly 70 per cent of co-operative societies shut down within a few years after they are established.

Ashoka added that they have decided to amend the Karnataka Co-operative Societies Act, 1959, in the next legislature session, so that the required representation could be ensured to other backward classes (OBC) in the Board of Directors of co-operative societies as well as cooperative banks.