MFS to pay 30pc corporate tax

Corporate tax on mobile financial services (MFS) will be applicable, like for other companies, at a 30% rate.

Previously MFS providers had to pay 32.5% in corporate tax.

The slashed tax rate for MFS companies was approved at the National Parliament today.

Earlier, in the budget for FY22, 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 organisations that have been paying a 40% tax.

However, the National Board of Revenue (NBR) on Thursday sent a new proposal to parliament to bring changes to the Finance Bill 2021, in the light of demands from MFS providers to be considered as financial institutions like banks instead of service providers.