Two Awami League MPs yesterday in parliament urged the finance minister to reconsider the proposed additional excise duty on bank deposits, saying it would create mistrust among people over banking services.

Whip Shahiduzzaman Sarker and former chief whip Abdus Shahid made the call during a discussion on the supplementary budget for the 2016-17 fiscal year.

"Panic spread among people over the excise duty. Rural people keep I k 1 or 2 lakh deposited in banks but they now fear that their money will be deducted," Shahiduzzaman said, urging Finance Minister AMA Muhith not to raise the excise duty.

The proposed budget raised the excise duty from Tk 500 to Tk 800 for accounts with balances between Tk 1 lakh and Tk 10 lakh at any time of the year.

The ruling party whip suggested that the minister increase the income tax or other direct taxes, reducing the VAT net. " If it is possible, people will get a respite."

He also asked the finance minister not to reduce the interest rate on national saving certificates.

Ex-chief whip Shahid said people had objections over the additional excise duty on bank deposits. "So I would request the finance minister to reconsider it."

Taking part in the discussion, Agricultural Minister Matia Chowdhury said 27 ministries or agencies sought only Tk 18,370 crore in the supplementary budget, which was not a big amount.

Noting that the government spentTk

3.17 lakh crore from the budget ofTk 3.4 lakh core, she said the government did not spend the public money whimsically. " It's the competence of the government," she said.

"The 27 ministries spent more than what was allocated. If we wish all the ministries could do so but we did not do so."

Matia cited the names of 10 ministries or divisions that placed the demands of large allocations in the supplementary budget. They are Technical and Madrasah Education Division, Security Service Division, Ministry of Science and Technology, Ministry of Housing and Public Works, Road Transport and Highways Division, Ministry of Defence, Ministry of Disaster Management and Relief, Local Government Division, Ministry of Environment and Forests, and Power Division.