Bangladesh Bank (BB) governor Dr Atiur Rahman has suggested the National Board of
Revenue (NBR) to make rational the rules and regulations for CSR (Corporate Social
Responsibility) to provide corporate houses more scope for social involvement.
The governor's suggestion came following the argument of the country's leading bankers
that the current CSR rules were not simple enough to follow. The bankers made this
observation at a discussion meeting on CSR, held at Hotel Sheraton on Wednesday where Dr
Rahman was the chief guest.

Editor of the Financial Express Moazzem Hossain moderated the programme, organized by
Management and Research Development Initiative (MRDI).

The bankers observed that the current CSR rules, made by NBR during the immediate past
caretaker government, incorporated some oblique clauses, which can easily be
misinterpreted. For instance, a clause regarding mandatory registration does not make it
clear whether the CSR implementing authorities or receivers or both of them need to fulfill
the criterion.

Referring to such oblique rule, the governor advised the NBR to adopt a coherent approach
towards the social activities with prudent policy support.
He also advocated the banker's plea for giving more tax incentives to their CSR programme.
The governor, however, urged the banks to carryout their CSR activities irrespective of tax
benefit as the activities would be a branding instrument for promoting their services and
business.

Dr Rahman also advised the government for framing a 'governance guideline' so the
corporate houses get a clear direction for targeted CSR programme. Otherwise, he said they
would end up in irrational CSR activities.

Chairman of the Association of Bankers, Bangladesh Limited (ABBL) urged the NBR to
provide more tax incentives to the banks and corporate so the banks can expand their CSR
activities.

Responding to the suggestions, NBR Member Md Aminur Rahman said the rules and
regulations could be made simpler, but providing more tax incentives need further scrutiny.
The banks and corporate are getting 10 percent tax deduction on CSR activities. The NBR
official said the government needs more tax for its own social safety-net programmes.
BB Executive Director Shitangshu Kumar Sur Chowdhury also spoke on the issue. Pak troops
conceded 1st casualty declining to relinquish power: Indian analyst.

Sourche: The Bangladesh Today, Bangladesh/9th Dec 2010