SANGSAD BHABAN, June 06, 2024 (BSS) - Finance Minister A H Mahmood Ali has 
proposed the exemption of excise duty on the accounts of the depositors or 
foreign lenders kept in the Offshore Banking Units (OBU) from the upcoming 
fiscal year 2024-25 (FY25).

"I propose the exemption of Excise duty on the accounts of the depositors or 
foreign lenders kept in the Offshore Banking Units under the jurisdiction of 
the Offshore Banking Act, 2024 (Act No. II of 2024)," he said.

The finance minister said this while placing around Taka 7.97 lakh crore 
national budget for FY25 at Jatiya Sangsad (JS) here this afternoon. 

The parliament passed the Offshore Banking Act 2024 on March 5 aiming to 
enhance the country's reserves of foreign currency and attract foreign 
investment. Before that, offshore banking activities were regulated through 
guidelines issued by the central bank.

According to the law, non-resident individuals or foreign firms who will 
invest in Bangladesh can open offshore bank accounts. An offshore banking 
unit will require the Bangladesh Bank's licence to operate, and only 
scheduled banks operating in Bangladesh can provide offshore banking 
services.

The law also states that offshore banking operations can be executed with 
five currencies-- the US Dollar, Pound, Euro, Yen, and the Yuan.

Moreover, no income tax or any direct or indirect charges will be imposed on 
the interest or profit earned by the OBUs, and no fees or levies will be 
imposed on the accounts of depositors or foreign lenders.