Dhaka, Feb. 12 -- Merchant banks pay tax at the same rate as banks despite playing different roles, and so they urge the National Board of Revenue to cut it down to what is applicable for market intermediaries.

A merchant bank is required to pay a 37.5 per cent corporate tax, equivalent to what is paid by listed banks, insurers, and non-bank financial institutions (NBFIs).

Merchant banks have been bearing heavy tax burden only because they have the word "bank" in their title, said Md. Moniruzzaman, managing director of Prime Bank Securities.

He insisted that the demand for a reduction in corporate tax for merchant banks is "very logical".

Merchant bankers last week placed a proposal tied to the matter before the revenue board.

The ma...