New budget to tax bank accounts with over Tk 100,000 at higher rates

Finance Minister AMA Muhith has proposed raising excise duties on bank accounts that hold over Tk 100,000 at any time in the year.

A bank account with debit or credit over Tk 100,000 but below Tk 1 million will be charged Tk 800 instead of Tk 500 from the 2017-18 fiscal year.

Bank accounts that have between Tk 1 million and Tk 10 million will be charged Tk 2,500 instead of Tk 1,500.

Accounts that have deposits between Tk 10 million and Tk 50 million will be charged Tk 12,000 instead of Tk 7,500.

The excise duty on accounts holding over Tk 50 million will be raised from Tk 15,000 to Tk 25,000.

Finance Minister Muhith unveiled these proposals during his presentation of the budget on Thursday.

The increased volume of bank transactions and a desire to collect more revenue from the sector led to the changes in the 1994 Excise and Salt Act, said Muhith.

The finance minister also doubled the excise duties on airline tickets.

Duties on air travel to non-SAARC countries will be increased from Tk 1,000 to Tk 2,000, while the amount on airline tickets to the US, Europe and other countries will be raised from Tk 1,500 to Tk 3,000.

“In order to avoid any inconvenience of travellers, this Excise Duty will be collected at the time of purchase of air tickets,” Muhith said.