The government is set to incorporate a new slab of the excise duty on bank account balance for small savers following widespread criticism over a proposed hike in the budget for the fiscal year (FY) 2017-18.
The excise duty may be fixed at Tk 150 for bank account balance, whether debit or credit, above Tk 0.1 million and Tk 0.5 million for the next FY.
In the proposed budget, the excise duty has been increased to Tk 800 for bank balance above Tk 0.1 million. However, the duty would be deducted once a year if the account balance exceeds Tk 0.1 million any time of that year.
Currently, bank account balance of up to Tk 20,000 is exempted from the excise duty.
Different analyses have showed the principal amount in the bank accounts would be negative if the proposed hike is enforced.
However, the government raised the exemption ceiling of the excise duty to Tk 0.1 million from Tk 20,000 in the proposed budget.
Sources concerned said the proposed excise duty on above Tk 0.5 million and Tk 1.0 million might be reduced by Tk 100 to Tk 200 so that the principal amount in the bank accounts doesn't turn into negative.
Officials said the proposed excise duty slab would remain unchanged for balance above Tk 10 million. Only small and mid-level depositors' interests would be considered in the final budget.
Sources in banks and non-banking financial institutions (NBFIs) said many small and mid-level bank depositors have withdrawn their deposits in recent times fearing the higher amount of the excise duty.
Many have started investing in the share market after withdrawing money from bank accounts, making the stock market vibrant in the last four days.
Daily turnover on the Dhaka Stock Exchange (DSE) increased to Tk 7.44 billion on Thursday from an average turnover of Tk 4.63 billion last week.
In the proposed budget, the government raised the excise duty to Tk 800 for bank balance between Tk 0.1 million and Tk 1.0 million. Similarly, Tk 2,500 has been proposed as the excise duty instead of Tk 1,500 for bank balance between Tk 1.0 million and Tk 10 million.
As per the proposed budget, the excise duty would be Tk 12,000 instead of Tk 7,500 for bank account balance between Tk 10 million and Tk 50 million while Tk 25,000 instead of Tk 15,000 if bank account balance exceeds Tk 50 million.
Finance Bill-2017 is expected to be passed by parliament with some major amendments on June 28, 2017. Changes in proposed excise duty rates might be announced by the Prime Minister (PM) on the day.
doulot_akter@yahoo.com
