Finance minister AHM Mustafa Kamal has proposed 37.5-per cent corporate tax for publicly-traded mobile financial service (MFS) providers in the proposed budget for fiscal year 2021-2022.
The current tax rate is 32.5 per cent.
Besides, Mr Kamal has proposed 40-per cent tax from the existing 32.5 per cent for non-publicly traded MFS providers.
"Financial inclusion, formalisation of the economy and expansion of the tax net are of utmost importance to the national economy," he said in the budget speech in parliament on Thursday.
The minister proposed to include MFS as a means of payment along with the conventional bank transfer.
He also proposed to make the rate of tax deduction 50 per cent higher where bills are not received through banking channels or MFS providers by suppliers and contractors.
Having TIN is mandatory for obtaining approval of a plan for a building, registration for a cooperative society and purchasing sanchayapatra exceeding Tk 200,000 and opening a postal savings account exceeding Tk 200,000.
Mr Kamal also proposed to define the e-commerce platform as a source tax deducting authority.
"If these proposals are endorsed…" he said, "the size of the formal economy will get bigger, and investment and revenue collection will increase…"
"Along with bank transfer, this ((MFS) modern technology is provided with a legal basis. This will ensure a business-friendly environment."
© 2024 - All Rights with The Financial Express
