The government has scrapped a plan to raise corporate tax on mobile financial service (MFS) providers in fiscal 2021-22.
Finance Minister AHM Mustafa Kamal had proposed an increase in the tax rate from 32.5 per cent to 35.5 per cent for listed mobile money companies and 40 per cent for non-listed ones, reports bdnews24.com.
Parliament passed a motion, brought by Moulvibazar-4 MP Md Abdus Shahid, in a voice vote to drop the proposed hike on Tuesday before the passage of the Finance Bill.
About 16 companies in Bangladesh now provide mobile financial services.
Experts opposed the proposal to raise the tax on these companies saying mobile banking is a way to involve the poor in the financial sector and raising the taxes would ultimately hurt the poor.
They said mobile money is also playing a key role in tackling the coronavirus pandemic by helping people stay at home.