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Nithin Kamath Questions 2% CSR Mandate, Suggests Higher Corporate Tax for Better Impact
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News18•30-09-2026, 08:15
Nithin Kamath Questions 2% CSR Mandate, Suggests Higher Corporate Tax for Better Impact
- •Zerodha CEO Nithin Kamath argues the mandatory 2% CSR spending may prioritize spending over actual social impact, proposing a higher corporate tax rate instead.
- •Kamath suggests shifting focus from the amount spent on CSR to the long-term impact created by the spending, highlighting Zerodha's "investing for the future" approach.
- •He raises concerns that many businesses lack expertise for effective CSR, leading to concentrated spending in developed states like Maharashtra, Gujarat, and Delhi, neglecting areas with greater needs.
- •Kamath questions how CSR outcomes are measured, noting a bias towards short-term targets (e.g., planting trees, building schools) rather than sustained, meaningful results like tree survival or student learning.
- •As an alternative, Kamath proposes increasing corporate tax from 25% to 27%, allowing the government to allocate funds more evenly and effectively across the country, rather than relying on company-led CSR initiatives.
Key Questions Answered
Nithin Kamath suggested increasing the corporate tax rate from 25 per cent to 27 per cent, allowing the government to allocate the additional funds more evenly across the country rather than concentrating them where profitable companies operate.
He argued that the mandate can incentivize businesses to focus on deploying a prescribed budget rather than solving actual social problems, and many companies lack the expertise to choose projects that generate the greatest impact.
Because businesses often focus projects in areas where they operate, CSR funding tends to be heavily concentrated in states like Maharashtra, Gujarat, and Delhi, leaving regions with greater needs underfunded.
