The government has proposed removing excise duty on bank deposits up to Taka 300,000, offering relief to the low and middle-income account holders.

Finance Advisor Dr Salehuddin Ahmed while presenting the national budget for FY26 proposed this through a pre-recorded televised speech today.

Currently, if a bank account balance reaches Taka 100,000 at any point in a year, the account holder must pay excise duty, which is deducted once annually by the bank. No excise duty is charged if the deposit stays below the Taka 100,000 threshold.

For deposits between Taka 100,000 and Taka 500,000, the annual excise duty is Taka 150.

If the proposed budget is passed, no VAT or excise duty will be charged on deposits up to Taka 300,000, relieving the financial burden for small depositors.

No other changes have been proposed in the structure of bank account excise duties.

In contrast, under the current fiscal year’s rules, high-value depositors face increased excise duty.

Source: BSS