Corporate Tax

MFS suppliers obtain 30% corporate tax

According to experts, integrated system solutions or wallet interoperability are an urgently required step for much faster growth in the fintech industry
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The reduction in the corporate tax rate was decided in the national parliament on Tuesday

Mobile financial services (MFS), like other businesses, will enjoy 30% corporate income tax, a 2.5% decrease from the previous 32.5%.

The reduction in the corporate tax rate was decided in the national parliament on Tuesday.

Although the Treasury Secretary’s draft budget for the 2021-22 budget year had sought an increase of up to 40%, the National Board of Revenue (NBR) sent a new proposal to Parliament on Thursday calling for changes to the 2021 Finance Act.

Also Read – Tax Hike To Disrupt MFS Growth, Industry Insiders Say

The finance minister had proposed increasing corporate taxes on MFS from the previous 32.5% to up to 40% in order to place them in the category of banks, insurance companies and other financial organizations that pay taxes at that rate.

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

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