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Keeping money in the country’s banking system is set to become more expensive as the revenue authorities plan to further increase excise duty on bank balances in the upcoming budget after three fiscal years.
According to finance ministry sources familiar with the matter, the cost may increase by up to 67%. The National Board of Revenue (NBR) last hiked excise duty in the fiscal 2021-22.
Experts oppose this initiative, arguing that it may discourage people from depositing money in banks. They contend that imposing additional pressure on these sectors as an expedient revenue-raising measure would be illogical in the current economic reality.
A senior finance ministry official, speaking anonymously to The Business Standard, said, “There may be a change in the existing excise duty amount on bank balances.”
