Excise duty not new, it has been increased slightly: Muhith

Defending his proposal to impose tax on bank deposits, Finance Minister AMA Muhith today said it has been slapped for several years and the tax rate will increase slightly in the next fiscal.

Read more: Excise duty on savings: How ethical is it?

“It is not new tax rather people have been paying this for several years. Next time, I have increased it slightly,” Muhith said responding to criticism from Jatiya Party lawmakers over imposing excise duty on bank deposits in the Parliament this noon.

Also read: Excise duty on bank accounts to double next fiscal year

Excise duty on all type of bank deposits including deposit pension scheme, fixed deposits has been increased 67 percent on an average in various ceilings in the next year.

Jatiya Party lawmaker Kazi Feroz Rashid asked why people will keep money in the bank? “If one keeps Tk one lakh after three months he will not get back the full amount.”

Responding to some criticism on various corruption and irregularities in banking sector, Muhith said, it is true that money is being smuggled and it is not possible to completely stop it.