The Government is set to announce significant changes in the upcoming national budget for fiscal year 2025-26, including an increase in the duty-free threshold for bank deposits and reforms to surcharge provisions on assets.
According to sources, the excise duty exemption limit for bank deposits is expected to be raised from Taka 1 lakh to Taka 3 lakh, providing relief to small savers. Currently, individuals with deposits exceeding Taka 1 lakh are required to pay an excise duty of Taka 150 on amounts above the threshold up to Taka 5 lakh. Under the proposed measure, deposits up to Taka 3 lakh will be exempt from such duties starting July 1, 2024.
The existing slabs for deposits above Taka 5 lakh will remain unchanged, with duties of Taka 500 for deposits over Taka 5 lakh up to Taka 10 lakh, Taka 3,000 for deposits between Taka 10 lakh and Taka 50 lakh, Taka 5,000 for Taka 50 lakh to Taka 1 crore, and higher duties for larger deposits, including Taka 20,000 for accounts between Taka 2 crore and Taka 5 crore, and Taka 50,000 for deposits exceeding Taka 5 crore.
Finance Adviser Salehuddin Ahmed is expected to announce these revised provisions during the budget presentation scheduled for June 2 at 4 pm in a televised address.
In addition to these changes, the Government plans to overhaul the surcharge system on assets. Currently, taxpayers with assets exceeding Taka 4 crore face surcharges ranging from 10 per cent to 35 per cent, calculated on inflated or pre-assessed amounts, often penalizing individuals based on artificially inflated tax bases. The proposed amendments aim to link surcharge calculations directly to actual tax liabilities, promoting transparency and tax justice.
Furthermore, the Government intends to reduce the advance income tax (AIT) on internet services from 10 per cent to 5 per cent, and increase the tax-free income threshold from Taka 450,000 to Taka 500,000. These measures are part of broader efforts to ease tax burdens and encourage transparency among high-income earners.
The budget announcement is highly anticipated, with officials emphasising a focus on fair taxation and support for small savers in the upcoming fiscal year.
