Banks urged to implement more CSR programmes

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FE Report
Bangladesh Bank governor Dr. Salehuddin Ahmed has called upon the bankers to come forward to discharge their corporate social responsibility (CSR) by implementing social welfare programmes in the country.
Dr. Salehuddin Ahmed made the call at a discussion organized by Exim Bank Foundation on the occasion of Exim Bank
Scholarship Awarding Programme at Hotel Sonargaon in the capital on Saturday.
On the occasion, chairman of National Board of Revenue (NBR) Abdul Mazid, home secretary Abdul Karim, BGMEA president Anwarul Alam Chowdhury Parvez, Exim Bank chairman Md. Nazrul Islam Mazumder and secretary general of Exim Bank Foundation A.K.M. Nurul Fazal Bulbul also spoke.
Appreciating the introduction of scholarship programmes in the country by Exim Bank, Dr. Salehuddin said, awarding of scholarships to 1,000 students of a country with 15 million population might appear a very small step. But, undoubtedly, it is an exemplary social welfare programme, he added.
The country's banking institutions can contribute a lot to the society by participating in welfare activities, following the example set by Exim Bank, the central bank governor said.
In line with their corporate social responsibility, other banks can initiate many programmes for human resource development in the country to turn its huge population into a skilled workforce, Dr. Salehuddin said adding that demand for skilled manpower is on the rise globally, especially in those developed countries where population growth rate is less than one percent. Bangladesh can take full advantage of overseas employment opportunities in European states by exporting skilled manpower, the governor said.
The source of skilled human resource is quality education. Without ensuring quality education, a country can hardly build up a skilled manpower, the BB governor observed.
At the discussion, Home Secretary Abdul Karim, who is former NBR chairman, said, all CSR-related activities in the country's education and health sectors should be made tax-free.
On the occasion, BGMEA president Anwarul Alam Chowdhury Parvez said, the government should exempt expenditures on social welfare activities from taxes in order to encourage the private entrepreneurs to contribute more to national development.
He said, different establishments belonging to the private sector are conducting many welfare activities as part of their corporate social responsibility (CSR). But the government has imposed 48 percent tax on social welfare-related expenses. Such step is not very much helpful to government revenue income. On the contrary, imposition of taxes on CSR-included programmes hinders human development activities by the private entrepreneurs.
Responding to the demand of private entrepreneurs for tax-exemption from CSR programmes, NBR chairman Abdul Mazid said, the board might take a decision in this regard soon.
Speaking at the function, Exim Bank chairman Md. Nazrul Islam Mazumder said, CSR activities are being hindered as the government has imposed 48 percent tax on CSR programmes.
He said if the private banks of the country give at least 2.0 per cent of their total profit for human development, a one billion Taka fund can be raised easily. A non-profitable higher educational institute might be constructed by utilizing the fund and around 0.10 million (one lakh) helpless meritorious students will be able to proceed with their higher studies in this institute, he said adding that withdrawal of taxes from expenditures on CSR-related programmes will pave the way for establishing such a university in the country, Exim Bank chairman said.
The bank has been awarding scholarships to 1000 student, who are poor but meritorious, every year since 2006 under its 'Exim Bank Scholarship Programme'.