Govt raises excise duty exemption limit to Tk 4 lakh

The government has proposed increasing the excise duty exemption threshold on bank account balances to Tk 4 lakh, up from Tk 3 lakh, as part of efforts to ease pressure on small savers.

The government has proposed raising the excise duty exemption limit on bank deposits to Tk 4 lakh in the FY2026-27 national budget, Finance Minister Amir Khosru Mahmud Chowdhury said on Thursday.

Under the proposal, account balances up to Tk 4 lakh will not be subject to excise duty, compared to the current threshold of Tk 3 lakh.

The finance minister said the measure aims to provide relief to small depositors and simplify the tax structure in the banking sector.

He also proposed that excise duty will be charged only once in cases where multiple accounts are opened against a single loan, instead of being applied separately to each account.

Currently, banks deduct excise duty annually based on deposit balances, along with other applicable taxes and charges on savings income.

TZ