Concession on offer for banks, FIs if lending rates to agro, SME sectors cut
Friday, 21 August 2009
FE Report
Bangladesh Bank (BB) will recognise commercial banks and financial institutions' loans to the agriculture sector and small and medium enterprises (SMEs) as their Corporate Social Responsibility (CSR) activities, provided they cut their lending rates for those sectors, the Governor of the central bank said.
"The government has already reduced corporate tax. Now the banks can cut interest rates for agriculture and SME sectors by two to three per cent to help them grow and contribute to the economy," BB Governor Atiur Rahman said while speaking at a stipend distribution ceremony of a bank in the city Tuesday.
The Governor said the CSR activities should be conducted in a planned way for better outcome, instead of an unplanned way currently being done by many.
"The banks have to do their CSR activities in a coordinated way so that they can support a larger community. The CSR activities must be more productive and meaningful," he added.
"But we do not want to make CSR compulsory. Rather, it should be self-motivational."
"We have urged the banks to submit details of their CSR activities so that we can get the real picture of their initiatives," he further said.
"I personally believe that there should not be any tax on CSR investment. At least the education programme under CSR activities should enjoy this benefit."
"I have already talked to the chairman of the National Board of Revenue. A Statutory Regulatory Order might be issued in this connection," he disclosed.
Currently, the companies enjoy 10 per cent tax waiver on their CSR investments.
Bangladesh Bank (BB) will recognise commercial banks and financial institutions' loans to the agriculture sector and small and medium enterprises (SMEs) as their Corporate Social Responsibility (CSR) activities, provided they cut their lending rates for those sectors, the Governor of the central bank said.
"The government has already reduced corporate tax. Now the banks can cut interest rates for agriculture and SME sectors by two to three per cent to help them grow and contribute to the economy," BB Governor Atiur Rahman said while speaking at a stipend distribution ceremony of a bank in the city Tuesday.
The Governor said the CSR activities should be conducted in a planned way for better outcome, instead of an unplanned way currently being done by many.
"The banks have to do their CSR activities in a coordinated way so that they can support a larger community. The CSR activities must be more productive and meaningful," he added.
"But we do not want to make CSR compulsory. Rather, it should be self-motivational."
"We have urged the banks to submit details of their CSR activities so that we can get the real picture of their initiatives," he further said.
"I personally believe that there should not be any tax on CSR investment. At least the education programme under CSR activities should enjoy this benefit."
"I have already talked to the chairman of the National Board of Revenue. A Statutory Regulatory Order might be issued in this connection," he disclosed.
Currently, the companies enjoy 10 per cent tax waiver on their CSR investments.