Govt set to include eight new sectors in CSR list
Tuesday, 15 June 2010
Doulot Akter Mala
The government is set to include free medical service, donations to public university; computer and technical education in MPO listed public or private educational institutions, sports, development of skill for export of manpower under the umbrella of corporate social responsibility (CSR).
More than eight new sectors might be included in the CSR from the next fiscal. Investors will get 10 per cent tax rebate on the invested money in those sectors.
The finance minister in his budget proposal Thursday proposed to raise number of CSR sectors to 22 from 15 and relax some of its conditions.
The proposed budget for 2010-2011 has incorporated the measure to attract investments from more corporate house in public welfare and social development.
The National Board of Revenue (NBR) will issue a Statutory Regulatory Order (SRO) by July 30, introducing the revised conditions and newly incorporated sectors.
The NBR might liberalise some measures including labour compliance issues and involvement of child labour in the amended order for CSR.
The government introduced the measure in January 2009 following demands of the big corporate houses paying taxes at higher rate.
The revenue board had compelled to relax the measures and extend areas of CSR to encourage the activity as it has found no response since 2009 on the offer.
"None of the corporate houses submitted documents in the last one year seeking tax rebate on CSR," said a senior tax official.
The government has felt it necessary to revise the rule as most of the corporate houses identified the conditions difficult to meet, he said.
"We will gradually bring more sectors under CSR net and avoid tax exemptions that eat up 2.5 per cent of our GDP," the tax official said.
The budget proposal for next fiscal has withdrawn the tax exemption facilities from fisheries farm (operated by corporate taxpayers), production of pelleted poultry feed, private medical, dental, engineering and technical college/university.
The government is set to include free medical service, donations to public university; computer and technical education in MPO listed public or private educational institutions, sports, development of skill for export of manpower under the umbrella of corporate social responsibility (CSR).
More than eight new sectors might be included in the CSR from the next fiscal. Investors will get 10 per cent tax rebate on the invested money in those sectors.
The finance minister in his budget proposal Thursday proposed to raise number of CSR sectors to 22 from 15 and relax some of its conditions.
The proposed budget for 2010-2011 has incorporated the measure to attract investments from more corporate house in public welfare and social development.
The National Board of Revenue (NBR) will issue a Statutory Regulatory Order (SRO) by July 30, introducing the revised conditions and newly incorporated sectors.
The NBR might liberalise some measures including labour compliance issues and involvement of child labour in the amended order for CSR.
The government introduced the measure in January 2009 following demands of the big corporate houses paying taxes at higher rate.
The revenue board had compelled to relax the measures and extend areas of CSR to encourage the activity as it has found no response since 2009 on the offer.
"None of the corporate houses submitted documents in the last one year seeking tax rebate on CSR," said a senior tax official.
The government has felt it necessary to revise the rule as most of the corporate houses identified the conditions difficult to meet, he said.
"We will gradually bring more sectors under CSR net and avoid tax exemptions that eat up 2.5 per cent of our GDP," the tax official said.
The budget proposal for next fiscal has withdrawn the tax exemption facilities from fisheries farm (operated by corporate taxpayers), production of pelleted poultry feed, private medical, dental, engineering and technical college/university.