NEW DELHI: Industry body ts has proposed an increase in the corporate social responsibility (CSR) levy by one percentage point from the current 2% to provide booster doses of Covid vaccine. While proposing an increase ahead of the Budget, the lobby group argued that twothirds of the revised levy could be earmarked for the purpose.
“The administering of booster doses would entail expenditure of additional money from the consolidated finances of the government. Keeping with the commitment that industry must play its part in sharing the load, we would like to suggest that the government may consider 1% of the existing 2% CSR for Covid and booster doses and additionally ask industry to contribute an extra 1% as part of their CSR spend, for 12 months,” it has proposed.
In FY20, the 2% contribution had resulted in nearly Rs 25,000 crore being spent on CSR by 22,500 companies. With change in rules and the pandemic, the number had dropped to around Rs 9,000 crore according to data for1,619 companies. While the government had allocated Rs 35,000 crore for vaccination for the current year, the amount will rise when FM Niramala Sitharaman presents the revised accounts on February 1.
“The administering of booster doses would entail expenditure of additional money from the consolidated finances of the government. Keeping with the commitment that industry must play its part in sharing the load, we would like to suggest that the government may consider 1% of the existing 2% CSR for Covid and booster doses and additionally ask industry to contribute an extra 1% as part of their CSR spend, for 12 months,” it has proposed.
In FY20, the 2% contribution had resulted in nearly Rs 25,000 crore being spent on CSR by 22,500 companies. With change in rules and the pandemic, the number had dropped to around Rs 9,000 crore according to data for1,619 companies. While the government had allocated Rs 35,000 crore for vaccination for the current year, the amount will rise when FM Niramala Sitharaman presents the revised accounts on February 1.
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