No excise duty on bank deposits up to Tk 300,000

Good news for low and middle-income account holders as the interim government has proposed waiving excise duty on bank deposits up to Tk 300,000.

Finance Adviser Salehuddin Ahmed shared such relaxation while unveiling the proposed budget for the 2025-26 fiscal year.

At present, anyone having minimum bank deposit of Tk 100,000 must pay excise duty, which is deducted once by the bank annually. No excise duty is charged if the deposit stays below the Tk 100,000 ceiling.

For deposits between Tk 100,000 and Tk 500,000, the annual excise duty is

Tk 150.

If the proposed budget is passed, no VAT or excise duty will be charged on deposits up to Tk 300,000, giving some sorts of relief to small depositors amid higher inflation regime.

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.

On the other hand, the government has doubled the withholding tax rate on interest from securities to 10 per cent from 5.0 per cent.

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