B Mirror Report: Around 10 million small and medium-income bank depositors in Bangladesh may receive tax relief on deposits of up to Tk 0.5 million in the upcoming fiscal year (FY2026-27), officials indicated.

The next year’s budget is expected to include full exemption from excise duty on deposits up to this threshold, an increase from the current Tk 0.3 million limit.

At present, deposits between Tk 0.3 million and Tk 0.5 million are liable for an excise duty of Tk 150. According to an official estimate by the National Board of Revenue (NBR), the waiver could reduce government revenue by around Tk 5.0 billion.

Despite the potential revenue loss, authorities consider the measure justified to support individuals affected by inflation and to encourage more people to enter the formal banking system.

A senior NBR official said students, consumers, and small and medium enterprises (SMEs) would be among the main beneficiaries. He noted, “Excise duty is also applied on loan accounts. When money is transferred from a loan account to a regular deposit account, banks deduct excise duty.”

Although excise duty is intended to be levied once annually, it is often charged multiple times when funds are moved between accounts, the official added. “We will gradually streamline the excise duty structure,” he said.

In the current fiscal year, the interim government had raised the excise duty exemption on bank deposits from Tk 0.1 million to Tk 0.3 million.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank (MTB), called the current excise duty on bank deposits “irrational,” noting that repeated deductions discourage marginal and unbanked depositors. He added, “Taxes should be applied strategically and should not deter people from keeping money in banks.”

Bangladesh Bank data show there were about 170 million bank accounts as of June 2025. From FY2026-27, deposits up to Tk 0.5 million are likely to be fully exempt from excise duty.

Currently, excise duty rates on larger deposits are as follows: Tk 500 for deposits between Tk 0.5 million and Tk 1 million; Tk 3,000 for Tk 1 million–5 million; Tk 5,000 for Tk 5 million–10 million; Tk 10,000 for Tk 10 million–50 million; and Tk 20,000 for deposits above Tk 50 million.

The NBR imposes excise duty under the Excise and Salt Act, 1944.