Bangladesh waives charges on bank deposits up to Tk 300,000

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

The measure was announced by Finance Advisor Salehuddin Ahmed on Monday in the proposed budget for the 2025-26 fiscal year.

Currently, if a bank account balance reaches Tk 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 Tk 100,000 threshold.

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, easing 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.