Dhaka, Mar 6 (bdnews24.com)—An adviser to the prime minister urged businesses Saturday to ensure money pledged for corporate social responsibility activities was being properly spent.

"It really requires a strong supervision system to be introduced to monitor CSR activities," the prime minister's adviser on economic affairs Moshiur Rahman told a roundtable in the city.

Wahiduddin Mahmud, a former caretaker government adviser, in his key-note speech, said CSR activities should be given policy support as businesses cannot be sustainable without practicing corporate social responsibility.

"But CSR activities should go beyond corporate concerns," he said.

Businesses must also ensure they are environment-friendly, for example, Mahmud, a Dhaka University economics professor, said.

An authority could be formed to oversee these issues, he suggested.

Syed Md Aminul Karim, a member of the Board of Investment said a circular of Jan 15 2009 outlines CSR activities in 15 areas, offering tax relief on 10 percent of the total spent.

Many businesses have already enjoyed the facility, he added.

Moshiur Rahman said tax relief facilities should encourage companies to contribute more to CSR activities.

"However, a company must not qualify for such relief if it is accused of loan default or tax evasion," the adviser said.

"Contribution to CSR can never be fully tax-free. They've to pay at least a minimum amount," he added.

Wahiduddin Mahmud agreed that transparency needs to be maintained for CSR tax relief, which needs to be monitored whether the amount is actually being spent for "money-whitening".

Another BOI member, Jahanara Siddiquee, said it cannot be maintained that everyone is performing CSR activities "with a noble purpose".

"For example, British American Tobacco Company is engaged in tree plantation in many parts of the country, which they're not doing without an interest."

She said that many businesses also take advantage of tax holidays for a few years and then "flee". Tax relief for CSR activities might be abused in the same way, she said.

Tax relief facilities should not be given to such businessmen, said Siddiquee.

Management and Resources Development Initiative (MRDI), Manusher Jonno Foundation (MJF), Federation of Chamber of Commerce and Industries (FBCCI) and Bangladesh Federation of Women Entrepreneurs (BFWE) jointly organised the programme. Moazzem Hossain, editor of the Financial Express, moderated.

bdnews24.com/mhc/pks/rah/2222h.