Dhaka — The Mobile Financial Services Companies in Bangladesh (MFS) will have to pay corporate tax on mobile phones at 4% more than earlier, even if others get a 2.5 % discount. And if it is an unregistered company, this rate will be doubled.
According to the budget proposal for FY 2021-22, listed MFS companies will have to pay 37%, and unlisted companies 40% corporate tax. In addition to proposing to increase corporate tax rates, the budget also proposes to increase money transactions in MFS.
Finance Minister AHM Mustafa Kamal on Thursday presented the budget proposal for the fiscal year 2021-22 in Parliament.
In the proposed budget, in cases where there is an obligation to make a bank transfer, the finance minister has imposed an obligation to make a transaction through MFS along with bank transfer.
The budget also proposes to deduct an additional 50% of the applicable source tax rate on transactions exceeding Tk 50,000 if it is not executed through cross-checking or bank transfer or MFS and the bill of supply and contracting is not received through banking or MFS.
In his budget speech, the finance minister said the country now transacts an average of Tk 1,745 crore per day through MFS.