Excise duty to increase on bank balance exceeding Tk 5m

Finance Minister Abul Hassan Mahmood Ali has proposed increasing the excise duty on bank deposits exceeding Tk 5 million to Tk 5,000 from Tk 3,000 in the financial year starting on Jul 1.

The finance minister announced the rise in excise duty while presenting the budget for the 2024-25 fiscal year in parliament on Thursday.

Currently, citizens are exempted from excise duties for a balance below Tk 100,000 in the bank.

Once a year, Tk 150 is deducted for deposits ranging from Tk 100,000 to Tk 500,000.

If the balance is between Tk 500,000 to 1 million, an excise duty of Tk 500 is deducted from the account.

“I am proposing to rationalise the slabs of bank accounts and the amount of excise duty,” said Ali.

According to the new proposal, an excise duty of Tk 3,000 will be deducted if the balance is between Tk 1 million and Tk 5 million.

• Tk 5,000 for a balance ranging from Tk 5 million to Tk 10 million.
• Tk 10,000 for a balance ranging from Tk 10 million to Tk 20 million.
• Tk 20,000 for a balance of Tk 20 million to Tk 50 million.
• Tk 50,000 if the balance crosses Tk 50 million.

Currently, the excise duty for deposits exceeding Tk 50 million is Tk 40,000.

The foreign minister also proposed exempting excise duty on the accounts of depositors or foreign lenders kept in offshore banking units under the jurisdiction of the Offshore Banking Act, 2024 (Act No. II of 2024).