Tax on Bank Deposits: 14-party demands its withdrawal

The ruling Awami League-led 14-party alliance yesterday demanded withdrawal of excise tax on bank deposits proposed in the budget.

A number of alliance partners also said several things proposed in the budget failed to meet people's desire and requested Finance Minister AMA Muhith to address those.

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They said taxes were imposed on many sectors that might frustrate people, and it might have a negative impact on the 14-party alliance in the next general polls.

Allies of the ruling party came up with their observations in a meeting at AL president's Dhanmondi office presided over by Jatiya Party (JP-Manju) General Secretary Sheikh Shahidul Islam.

Meeting sources said the issue of excise tax on Bank accounts dominated the meeting, and most of the partners of the AL-led coalition expressed their dissatisfaction over the issue.

According to the proposed budget for 2017-18 fiscal year, accounts with balance between Tk 1 lakh and Tk 10 lakh may be slapped with Tk 800 excise duty at any time of a year.

Finance minister on Friday categorically said the decision of imposing excise duty on bank account in the proposed budget would not be withdrawn as the people who keep Tk 1 lakh or more in the bank are affluent.

Briefing journalists, Jatiya Samajtantrik Dal (Faction) President Sharif Nurul Ambia said some changes were “mandatory in the proposed budget”, and they demanded withdrawal of the excise tax on Bank deposits. "Otherwise, people will be discouraged to deposit their money to their bank accounts," he added.

Mohammed Nasim, spokesperson for the 14-party alliance, said they thanked the finance minister for this ambitious budget, and it proved that the country was advancing and it would boost the country's economy. "By implementing the proposed budget, we will move towards a higher middle class country."

"We have discussed the excise tax on bank deposits. We have some observations about the proposed budget. Some proposals of the budget have failed to meet people's desire. We hope that the prime minister and the finance minister will address the negative issues in the budget," said Nasim, also the health minister.

The meeting also condemned the arson attack on the Chakma community in Rangamati's Longadu by Bangalee settlers on Friday and demanded exemplary punishment of the culprits. It also decided to send a team of the 14-party alliance to visit Longadu tomorrow.