The New Nation - Internet Edition

Staff Reporter

Noted Economist Prof Wahiduddin Mahmud has suggested the Government to exempt donations from tax to encourage the wealthy section of the society to philanthropic services.

He was speaking at a seminar on Corporate Social Responsibility organised by Bankers forum at CIRDAP auditorium in the city yesterday.

He said philanthropy is free of income tax in other countries and businesspeople, unlike in Bangladesh, are not only involved in profiteering but also performing corporate responsibilities with their profit money. Even, world famous universities like Harvard and Cambridge are run by donations from rich people.

Dr Mahmud said the task of rendering welfare services now solely rests on the Government. The situation was not so in the past. History says that Zaminders and wealthy persons did set up and operate educational institutions, construct roads and also were involved in most philanthropies.

But, the scene has changed at present and an absence of philanthropy is prevailing in the country. Fear for the Anti-corruption Commission has made the situation even worse. Rich people are now afraid of donating money in welfare purposes also, he observed.

"To ensure an environment for philanthropic activities, the Government should make donations tax-free," he said.

"Market economy is cruel, as it creates an uneven competition without any scope for bringing those who fall behind at par with others," the seasoned economist observed and stressed on ensuring corporate social responsibility to humanise the cruel sides of market economy that is based on profiteering.

Dr Mahmud said corporate social responsibility does not mean to donate only. If you are evading taxes, paying less to your staff, profiting high and producing substandard or adulterated goods and then donating money for welfare tasks to draw attention of media- it will not be discharging a social responsibility in the true sense.

He also made an oblique reference to the multinational companies doing business in Bangladesh. "To impose unequal treaty, establish monopoly and do heavy profit by using weakness in regulatory mechanism of the country and then donating a large sum to have a media focus does not mean corporate social responsibility," he said.

President of Bankers Forum M A Khaleq chaired the seminar. Managing Director of Ansar VDP Bank Dr Mujibur Rahman Khan, Managing Director of Karmasangsthan Bank Shahjahan Mian, Deputy Managing Director of Mutual Trust Bank Kamrul Islam Chowdhury and Executive Vice-president of NCC Bank Ehsanul Al spoke on the occasion.