The rift between the government and charity heads over tax cuts took a tart turn last night after former Philanthropist of the Year Richard Ross accused the government of coming in the way of genuine causes and then justifying their step by claiming that philanthropy is just a smokescreen to avoid paying taxes.

George Osborne’s decision to lower tax relief on philanthropic spends has infuriated charity, arts and research organisations that claim Osborne and co. are engaging in a “disgusting” slur to discourage people from donating money to philanthropic causes – a “perverse” move that won’t only cost charities millions of pound every year, but will also halt the country’s progress.

“You want to encourage people to be more philanthropic, not limit them. (This decision) can only harm the country. They are using a sledgehammer to crack a nut. They are penalising everybody”, Richard Ross said.

“To look at philanthropists as if they were just tax avoiders is really rather disgusting”, said Dame Stephanie Shirley who is known for her charitable work. As a result of the government’s new scheme, many donors are now wary of giving out five-, six- or seven-digit figures, she added.

Slamming the government for punishing everyone for showing honest intents, Ross said, “There are not enough wealthy people giving to charity and this is giving out completely the wrong message. It is saying if you give away too much we are going to penalise you.”

According to sources, non-profit firms such as Marie Curie Care, Unicef, the National Theatre, Universities UK and the YMCA have also voiced their dissent over the proposed tax policy, which is slated to take effect from this month.