DHAKA: The government is not implementing the extended rate of excise duty on bank deposits and the unified 15 per cent Value-Added Tax (VAT) proposed in the national budget for 2017-2018 fiscal year.

Prime Minister Sheikh Hasina in general discussion on the proposed budget in the Parliament on Wednesday (June 28) asked the finance minister to be refrained from implementing the proposed excise duty for sake of the countrymen.

She, however, suggested for reducing the rate for excise duty of Tk 150 for bank account having Tk. one lakh but not more than Tk. five lakh and Tk. 500 for banks accounts having Tk. five lakh but not more than 10 lakh.   

The PM also asked the finance minister to continue the old VAT system for at least two more years.

Earlier on June 20, Finance Minister AMA Muhith at a function in the city said that his proposal about unified VAT and excise duty will be revised after PM’s suggestion.  

The PM made her suggestion during her open discussion on the proposed national budget amid huge criticism in and outside the Parliament by MPs and others.

The proposed national budget for fiscal 2017-2018 imposed Tk. 800 excise duty on bank deposits with balance between over Tk. 1 lakh and Tk. 10 lakh at any time of a year.

Placing her suggestion, Sheikh Hasina said that the countrymen and the business communities are not responding positively over the proposed VAT rate and the excise duties of bank deposits. “We won’t go against the people,” she said.
About the VAT law, she said that although the ‘Value-Added Tax and Supplementary Duty Act 2012’ was enacted in 2012 with a unified 15 per cent VAT on all goods and services, the government could not implement the major features of the law due to protests from businesses and lack of consensus on the proposed rate of VAT.

Alongside Sheikh Hasina, Jatiya Party chairman HM Earhsad and others on Wednesday (June 28) took part in the general discussion on the proposed national budget for 2017-18 fiscal.

The budget will be passed in the Parliament on Thursday (June 29).

The 16th session of the 10th Parliament, which is also budget session for this year, resumed on Wednesday (June 28) after Eid-ul-Fitr vacation.

The session began on May 30.  Finance minister Abul Maal Abdul Muhith placed the budget proposal for 2017-2018 fiscal in the Parliament on June 01.

BDST: 2055 HRS, JUNE 28, 2017
EHJ