Bankers and policymakers at a round-table in Dhaka yesterday urged the government to increase the tax rebate on the banks’ CSR spending, which they believe would play the exact role as development funds.
The round-table was held in Dhaka on policy support to Corporate Social Responsibility (CSR) in the context of tax exemption for the banking sector. Management and Research Development Initiative (MRDI) organised the function at the BIBM auditorium.
“Paying tax to government is also a social responsibility and, therefore, we can as well identify part of it asked to be exempted for further activities of CSR,” said Dr Shah Md Ahsan Habib, director of Bangladesh Institute of Bank Management (BIBM).
However, the event’s chief guest, Bangladesh Bank Governor Dr Atiur Rahman urged the banks to carry out its social involvement without hampering the source of revenue earnings of the government.
Nevertheless, the governor agreed upon the need for regular research and regulatory coordination for finding policy gap to explore the hidden potential of successful CSR operations.
In addition, he also requested the NBR to raise tax rebate on CSR activities from the existing 10% (on a maximum of Tk8 crore or 20% of a bank’s gross income, whichever is lower) for greater value addition to the society.
Experts at the panel pointed out that a layout of a strategy for planned implementation of the CSR fund by creating joint initiative will result in tremendous and astonishing growth of the country.
Syed Md Aminul Karim, member of National Board of Revenue (NBR), has also attended the discussion and noted down the requests made.
The keynote presented to the panel put up recommendation for consideration that was read out by the central bank’s deputy governor, SK Sur Chowdhury.
“Tax exemption under CSR activities should be enhanced while the rate needs to be reviewed and also tax rebate for CSR should be simplified and made easier so that banks can avail of it.”
He added: “A closer linkage between NBR and Bangladesh Bank is a must for better functioning of CSR initiatives.”
Other speakers including Swapan Kumar Bala, CEO of Dhaka Stock Exchange, shared the possible positive impact a tax exemption on the banks’ profitability may bring for the common people.
Editor of the Financial Express Moazzem Hossain moderated the programme.