Excise duty exemption threshold on bank deposits rises to Tk 4 lakh

The government has proposed increasing the excise duty exemption threshold on bank deposits to Tk 4 lakh from the existing Tk 3 lakh in a move aimed at providing relief to small depositors and promoting financial inclusion.

Finance Minister Amir Khosru Mahmud Chowdhury made the proposal while presenting the national budget for the 2026-27 fiscal yearon Thursday.

The minister also proposed changes to the way excise duty is imposed on loan-related bank accounts.
He noted that multiple bank accounts are often opened against a single loan facility in the banking system, resulting in excise duty being deducted multiple times from borrowers.

To address this issue, the finance minister proposed that excise duty be charged only once on a single loan facility, regardless of the number of associated accounts. The proposed measures are expected to reduce the tax burden on small depositors and eliminate what the government described as an anomaly in the collection of excise duty on loan-related accounts.

Excise duty on bank deposits is an annual charge deducted by banks when an account’s balance reaches a certain threshold at any point during the year.