Bangladesh plans to gradually withdraw excise duty on bank deposits and airfares, while the NBR hints at a possible extension of the individual income tax return deadline for remaining taxpayers.
Bangladesh’s government plans to gradually withdraw its long-standing excise duty, National Board of Revenue (NBR) Chairman Abdur Rahman Khan said on 25 January 2026.
Speaking at a press conference at NBR headquarters ahead of International Customs Day, he noted that a complete removal at once is not feasible due to potential revenue shortfalls.
“We have sent a signal that we will gradually move away from this (excise duty),” Khan said, referring to last year’s withdrawal of excise duty on bank deposits up to BDT 3,00,000. Currently, excise duty is applied to bank deposits above BDT 3,00,000 and to domestic and international airfares, generating an estimated BDT 6,000 crore annually.
To offset potential revenue losses, the government plans to gradually replace excise duty collections with revenue from other sectors, including tobacco. Khan highlighted that “we expect to collect an additional BDT 10,000 crore from the tobacco sector this fiscal year due to policy measures.” He also questioned the fairness of excise duty on bank deposits, stating, “Even if someone takes a loan, excise duty is deducted simply because the money is deposited in a bank. Besides this, there is VAT on services and other taxes. This is unjustified.”
The NBR chief also discussed ongoing efforts to improve trade and business facilitation. He mentioned plans to reduce import duties and noted that 90% of imported consignments are now released from ports within a day. However, he acknowledged that traders continue to raise concerns over product valuation at the import stage.
Khan further hinted at a possible extension of the individual income tax return deadline, currently set for 31 January. Of 4.7 million registered taxpayers, 3.4 million have already filed, leaving about 1.3 million yet to submit returns. No formal decision on an extension has been made.
Earlier, NBR Chairman hinted that the deadline for submitting online income tax returns could be extended as a large portion of registered taxpayers have not yet filed digitally.
