MFS providers to enjoy 30% corporate tax

Mobile financial services (MFS) will enjoy 30% corporate tax as other companies, a 2.5% drop from the previous 32.5%.

The reduction in the corporate tax rate was approved at the National Parliament on Tuesday.

Although the proposed budget by the finance minister for the fiscal year 2021-22 had sought an increase of up to 40%, the National Board of Revenue (NBR) on Thursday had sent a new proposal to parliament asking for changes in the Finance Bill 2021.

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The finance minister had proposed increasing corporate taxes on MFS up to 40% from the existing 32.5%, to bring them into the category of banks, insurance companies, and other financial organizations that have been paying tax at that rate.

However, NBR had asked for changes in light of demands from MFS providers to be not considered as financial institutions like banks.