By IANS,
New Delhi: Planning Commission Deputy Chairman Montek Singh Ahluwalia Monday opposed the proposal of making it mandatory for corporates to contribute to the social responsibility initiative.
“There are certain proposals that you should introduce a legal requirement that companies should spend a certain percentage of their profits on CSR (Corporate Social Responsibility). I am not in favour of that,” Ahluwalia told reporters at an event here.
“That amounts to privatising taxation,” he added.
The government has been saying that it would make it mandatory for the corporates to tell its stakeholders if they have made a contribution of two percent of their profits to corporate social responsibility or not.
“If you want them to spend another two percent, that’s like saying that corporate tax would be raised to 32 percent. It’s better to do that. You cannot have a corporate tax and then say spend another 2 percent. I am opposed to that,” said Ahluwalia.
According to the corporate industry, CSR initiative should be voluntary and should not be forced upon it.