Excise duty to be credited from bank accounts this month, how much is it

Two weeks of December have already passed. From the final week of the month, excise duty will begin to be credited from customers’ bank accounts.

Customers are informed of the deduction amount through SMS notifications sent to their mobile phones.

Receiving such messages suddenly can cause confusion and concern among customers, as many do not immediately understand why money has been deducted.

Consequently, a number of people find it difficult to grasp the explanation behind this type of deduction.

Generally, customers receive SMS notifications about the deduction towards the end of December.

However, it is important to remember that if, at any time in 2025, your bank account balance reaches Tk 300,000 or more even once, excise duty will be deducted. This excise duty is imposed based on the account balance.

Previously, excise duty was deducted if a bank account balance exceeded Tk 100,000. This change was introduced in June during the announcement of the current fiscal year’s budget. As a result, customers will receive some relief.

Excise duty is a type of indirect tax imposed by the government on certain goods, services or financial activities. For example, it may be levied on keeping money in a bank, making mobile phone calls or purchasing cigarettes.

This type of duty is not imposed on an individual’s or institution’s income or profit; rather, it is charged on specific activities or the use of certain facilities.

If, at any time during the year, your account balance remains up to Tk 300,000, no excise duty will be deducted.

The applicable excise duty rates are as follows:

From 300,001 taka to 500,000 taka: 150 taka

From 500,001 taka to 1,000,000 taka: 500 taka

From 1,000,001 taka to 5,000,000 taka: 3,000 taka

From 5,000,001 taka to 10,000,000 taka: 5,000 taka

From 10,000,001 taka to 20,000,000 taka: 10,000 taka

From 20,000,001 taka to 50,000,000 taka: 20,000 taka

Above 50,000,000 taka: 50,000 taka

The National Board of Revenue (NBR) deducts excise duty. However, on behalf of the NBR, banks automatically deduct the excise duty from accounts and deposit it into the government treasury.

If, at any point between January and December of a given year, the deposit or balance of a bank account reaches Tk 300,000 or any of the higher threshold levels even once, excise duty must be paid at the prescribed rate.

Even if the threshold is reached multiple times, excise duty is deducted only once per year.

If a customer holds multiple bank accounts that meet the criteria for excise duty, the duty will be deducted from each account separately.

For example, if you have a total of one million taka across three bank accounts, Tk 400,000 in one account and Tk 300,000 in each of the other two, then 150 taka will be deducted from each account, amounting to a total deduction of 450 taka.

In general, excise duty is deducted from all types of bank accounts, including savings accounts, current accounts, fixed deposit receipts (FDRs), deposit pension schemes (DPS), salary accounts and similar accounts.

There are several reasons for imposing excise duty. The National Board of Revenue (NBR) collects this duty, while banks automatically deduct it from accounts and deposit it into the government treasury on behalf of the NBR.

Key reasons for imposing excise duty include revenue generation, bringing higher-income individuals into the tax net, ensuring transparency in bank accounts, promoting financial discipline and providing administrative and taxpayer convenience.