Excise Duty

Course Code: 3105

Md. Ahasan Uddin

Assistant Professor
Department of A&IS
Faculty of Business Studies (FBS)
University of Dhaka
 Excise Duty

Excise Duty is a tax on goods produced inland.

Levied on the manufacture, sale, or purchase of any
commodity or service.
Unlike the excise tax, which applies to domestic and
imported goods alike, the excise duty is levied on domestic
products only.
The basis of tax computation may be ad valorem (as in a
value added tax) or specific or in rem (ie, on the physical
units).


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 Excise Duty

Excise duty is imposed

to discourage the consumption of certain 'undesirable'

commodities or to control

or ration the consumption of certain commodities in

times of external scarcity or inflationary pressure.

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 Excise Duty

Excise duty is imposed in Bangladesh under the Excise

and Salt Act 1944 (Act I of 1944) enacted on 24 February
1944.
Before introducing Value Added Tax (VAT) in July 1991,
the excise constituted the second largest source of revenue
for the government (about 22% of total revenue).
The share of excise duty in total tax in 1990-91was
26.53%, which fell to 17.8% in 1991-92, 3.68% in 1992-93,
and to only 1.4% in 2000-2001.

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 Excise Duty

The excisable goods and services kept outside the VAT-net

in 1991-92 include
Tobacco
natural gas and petroleum products
Newsprint
gold or silver and products thereof
Salt
bank cheques and
bricks. The goods and services subject to excise duty are
listed in the First Schedule of the Excise and Salt Act 1944
and their list includes bidi, cloth and cloth goods, and bank
services. Excise duty is collected by the Customs, Excise
and VAT wing of the national board of revenue.
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 Excise Duty

The goods and services subject to excise duty are listed in

the First Schedule of the Excise and Salt Act 1944 and their
list includes
Bidi
cloth and cloth goods
and bank services.

At present excise duty applies to only two items: bank

deposits and domestic air ticket (Tk. 250 per journey).

Excise duty is collected by the Customs, Excise and VAT

wing of the national board of revenue.
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 Levy & Collection of Duty

For the purpose of levy and collection of duties

classification and description of excisable goods shall be as
per First Schedule of the Customs Act, 1969.

The board may, by notification in the official Gazette fix,

for the purpose of levying the said duties, tariff values in
the First Schedule as chargeable with duty ad valorem and
may alter any tariff values for the time being in force.

Different tariff values may be fixed for different classes or

descriptions of the same article.

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 Levy & Collection of Duty

With the prior approval of the Government, the Board

may, in lieu of levying and collecting duties of excise on
excisable goods and service by notification in the official
Gazette, levy and collect duties on the capacity of plants,
machinery, undertakings, establishments, installations or
premises producing or manufacturing such goods, or
providing or rendering such services.

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 Regulatory Duty of Excise

The Government may impose a regulatory duty on any

excisable goods or excisable services, in addition to the
duty leviable at a rate not exceeding 100 per cent of the
rate of duty leviable thereon or in the case of excisable
goods, at a rate not exceeding 30 per cent ad valorem or
25 per cent of the retail price and, in the case of excisable
services, 25 per cent of the charges for such services.

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 Regulatory Duty of Excise

The Government may impose a regulatory duty on any

other goods or services, at a rate, in the case of goods, not
exceeding 50 per cent ad valorem or 35 per cent. of the
retail price and, in the case of services, not exceeding 35
per cent of the charges for the services

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 Additional Duty of Excise

The Government may impose an additional duty on any

other goods or services, if delayed or unpaid.

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 Assessable Value

value shall be deemed to be the wholesale cash price of

the like kind and quality is sold or is capable of being sold
to the general body of retail traders or, if there is no
general boy of retail traders, the general body of
consumers on the day on which the article which is being
assessed to duty is removed from the factory or warehouse

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 Exemptions

The Government may from time to time, by notification in

the official Gazette, exempt, any goods or class of goods or
any services or class of services from the whole or any part
of the duty leviable under this Act.

(2) The Board may, by special order in each case, exempt

from the payment of the whole or any part of the duty
leviable under this Act, under circumstances of an
exceptional nature to be stated, in such order, any goods
or services on which such duty is leviable.

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