Why Nithin Kamath wants corporate tax raised to 27% from 25% instead of 2% CSR: ‘Is the spend really necessary?’
Mint 1 hr ago·29 Sept 2026, 5:27 pm
Zerodha co-founder Nithin Kamath has sparked a debate on corporate social responsibility (CSR) in India. He argues that the mandatory 2% CSR spend is often inefficient and questions whether the money is being used effectively. Instead of mandating this spend, Kamath suggests that the government should raise the corporate tax rate from 25% to 27%. The revenue from this increase, he argues, could be better utilized to fund social programmes directly.
This proposal highlights a key difference between government spending and corporate philanthropy. While CSR aims to address specific community needs, government spending can be directed toward broader public welfare initiatives. For investors, this discussion is a reminder that corporate governance and tax policy are interconnected. A shift in tax policy could impact the bottom lines of listed companies, while changes in CSR spending could alter the landscape of corporate philanthropy in India.
Investors should watch how policymakers respond to this feedback. If the government decides to raise corporate tax, it could lead to a more level playing field for businesses. Conversely, if CSR regulations are tightened, companies may need to find more efficient ways to manage their social impact. Both scenarios would have implications for the broader market and the companies operating within it.
Excerpt from Mint
Zerodha co-founder Nithin Kamath has questioned whether India’s mandatory 2% CSR spending actually makes a difference, and suggested that companies could instead pay more tax to fund social programmes. Nithin Kamath proposed raising the corporate tax rate to 27% from 25% and allowing the government to direct the…Read the original at Mint
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