Fin min plans to formulate comprehensive CSR policy

Finance minister Abul Maal Abdul Muhith has sought suggestions from bankers, trade bodies and research organisations for preparing a comprehensive policy on corporate social responsibility (CSR) for private sector.
Muhith took the initiative amid absence of a comprehensive policy on expenditure of private sector companies in CSR activities in the country.
Currently, Bangladesh Bank has a CSR guideline only for financial institutions though many other sectors also run CSR activities.
The National Board of Revenue has also a statutory regulatory order on giving income tax rebate on CSR activities.
In this context, Muhith wrote a letter on July 11 to the chiefs of two associations from banking sector, two leading trade bodies and three research organisations making some observations and comments on overall CSR situation in the country and seeking their suggestions, if any, by August 1.
The letter was sent to the Bangladesh Association of Banks, Association of Bankers, Bangladesh, the Federation of Bangladesh Chambers of Commerce and Industry, Dhaka Chamber of Commerce and Industry, Bangladesh Institute of Development Studies, Economic Research Group and Policy Research Institute.
Muhith said that there was no comprehensive policy in the country except Bangladesh Bank has some directions for financial institutions which the institutions follow while other institutions from different sectors like commerce, industry and agriculture also do their CSR activities in their own way.
The NBR has also defined some sectors for CSR money expenditure eligible for getting tax rebate.
There is also no specific concept on initiatives which can be taken under CSR, he said.
In the letter, Muhith also raised questions about unnecessary expenditure for doing CSR activities by the businesses.
‘There are some questions on the matter. Grand ceremony with feast is arranged for giving annual awards for performing CSR activities. Education scholarship is also given under CSR,’ he wrote.
Officials concerned said that finance ministry would prepare a comprehensive report on CSR activities of private sector in the country as part of preparing a guideline.
The finance minister sought suggestions from the organisations as part of the initiative, they said.
Officials of the FBCCI said that they had started to prepare a report on CSR to give input to the finance ministry.
According to the NBR SRO, corporate taxpayers can avail 10 per cent income tax rebate through spending their 20 per cent of income or Tk 12 crore, which is lower, in CSR activities.
The revenue board first offered the benefit in 2010 in a bid to encourage CSR expenditure by private sector.
The NBR, however, specified 23 areas for spending the CSR money by corporate taxpayers for getting the rebate.

News Courtesy: www.newagebd.net