If you are a bank customer in Bangladesh, you may have noticed a deduction from your account balance in January 2024. This is because the government has imposed an excise duty on all bank accounts, based on the highest balance on any day in the previous calendar year. This is a form of indirect tax that is collected by the bank on behalf of the government.
What is the purpose of excise duty?
According to the Internal Resources Division (IRD), Ministry of Finance, Govt. of Bangladesh, the excise duty is levied under section 12A (1) of Excise Duty and Salt Act 1944, dated 1 June 2022 (SRO No. 162-Law/2022/175– Excises). The purpose of this tax is to generate revenue for the government and discourage excessive savings and consumption by the people.
How much excise duty do you have to pay?
The amount of excise duty you have to pay depends on the highest balance (credit or debit) of your respective accounts (savings/current), FD, loans or credit card in the previous calendar year. The following table shows the applicable excise duty for 2023, which was realized within Jan 2024:
Highest Balance (Credit/Debit in Taka) | Excise Duty in Taka |
0-100,000 | Nil |
100,001 – 500,000 | 150 |
500,001 – 1,000,000 | 500 |
1,000,001-10,000,000 | 3,000 |
10,000,001-50,000,000 | 15,000 |
50,000,001 and above | 50,000 |
For example, if you had a savings account with the highest balance of Tk. 250,000 in 2023, you would have to pay Tk. 150 as excise duty in Jan 2024. If you had a credit card with the highest balance of Tk. 1,500,000 in 2023, you would have to pay Tk. 3,000 as excise duty in Jan 2024.
How can you check your excise duty?
You can check your excise duty by logging into your online banking account or mobile banking app. You can also visit your nearest branch or call your bank’s customer service to get the details of your excise duty. You will receive a statement from your bank showing the amount of excise duty deducted from your account.
How can you reduce your excise duty?
There are some ways you can reduce your excise duty, such as:
Keeping your bank balance below the threshold of Tk. 100,000, which is exempt from excise duty.
Use multiple bank accounts to distribute your balance and avoid crossing the higher slabs of excise duty.
Investing your money in other instruments, such as mutual funds, bonds, stocks, etc., which are not subject to excise duty.
Spending your money wisely and avoiding unnecessary debt.
What are the consequences of not paying excise duty?
If you fail to pay your excise duty, you may face penalties and legal actions from the government. You may also lose your access to banking services and facilities. Therefore, it is advisable to pay your excise duty on time and comply with the tax laws of the country.
Conclusion
Excise duty is a tax that you have to pay as a bank customer in Bangladesh. It is based on the highest balance of your bank accounts in the previous calendar year. It is collected by the bank on behalf of the government. It is intended to generate revenue for the government and discourage excessive savings and consumption by the people. You can check your excise duty by logging into your online banking account or mobile banking app. You can also visit your nearest branch or call your bank’s customer service to get the details of your excise duty. You can reduce your excise duty by keeping your bank balance below the threshold of Tk. 100,000, using multiple bank accounts, investing your money in other instruments, or spending your money wisely. You should pay your excise duty on time and comply with the tax laws of the country. Otherwise, you may face penalties and legal actions from the government.