diff --git a/x/tax/handlers/bank_msg_server.go b/x/tax/handlers/bank_msg_server.go
index 9dd5886b..45e71e33 100644
--- a/x/tax/handlers/bank_msg_server.go
+++ b/x/tax/handlers/bank_msg_server.go
@@ -38,7 +38,7 @@ func (s *BankMsgServer) Send(ctx context.Context, msg *banktypes.MsgSend) (*bank
 	fromAddr := sdk.MustAccAddressFromBech32(msg.FromAddress)
 
 	if !s.treasuryKeeper.HasBurnTaxExemptionAddress(sdkCtx, msg.FromAddress, msg.ToAddress) {
-		netAmount, err := s.taxKeeper.DeductTax(sdkCtx, fromAddr, msg.Amount)
+		netAmount, err := s.taxKeeper.DeductTax(sdkCtx, fromAddr, msg.Amount, false)
 		if err != nil {
 			return nil, err
 		}
@@ -76,7 +76,7 @@ func (s *BankMsgServer) MultiSend(ctx context.Context, msg *banktypes.MsgMultiSe
 	if tainted {
 		for i, input := range msg.Inputs {
 			fromAddr := sdk.MustAccAddressFromBech32(input.Address)
-			netCoins, err := s.taxKeeper.DeductTax(sdkCtx, fromAddr, input.Coins)
+			netCoins, err := s.taxKeeper.DeductTax(sdkCtx, fromAddr, input.Coins, false)
 			if err != nil {
 				return nil, err
 			}
@@ -85,7 +85,7 @@ func (s *BankMsgServer) MultiSend(ctx context.Context, msg *banktypes.MsgMultiSe
 
 		for i, output := range msg.Outputs {
 			toAddr := sdk.MustAccAddressFromBech32(output.Address)
-			netCoins, err := s.taxKeeper.DeductTax(sdkCtx, toAddr, output.Coins)
+			netCoins, err := s.taxKeeper.DeductTax(sdkCtx, toAddr, output.Coins, true)
 			if err != nil {
 				return nil, err
 			}
diff --git a/x/tax/handlers/market_msg_server.go b/x/tax/handlers/market_msg_server.go
index 510c232f..1656fe26 100644
--- a/x/tax/handlers/market_msg_server.go
+++ b/x/tax/handlers/market_msg_server.go
@@ -37,7 +37,7 @@ func (s *MarketMsgServer) SwapSend(ctx context.Context, msg *markettypes.MsgSwap
 
 	sender := sdk.MustAccAddressFromBech32(msg.FromAddress)
 
-	netOfferCoin, err := s.taxKeeper.DeductTax(sdkCtx, sender, sdk.NewCoins(msg.OfferCoin))
+	netOfferCoin, err := s.taxKeeper.DeductTax(sdkCtx, sender, sdk.NewCoins(msg.OfferCoin), false)
 	if err != nil {
 		return nil, err
 	}
diff --git a/x/tax/handlers/wasm_msg_server.go b/x/tax/handlers/wasm_msg_server.go
index f77a7d3a..6f990f98 100644
--- a/x/tax/handlers/wasm_msg_server.go
+++ b/x/tax/handlers/wasm_msg_server.go
@@ -59,7 +59,7 @@ func (s *WasmMsgServer) ExecuteContract(ctx context.Context, msg *wasmtypes.MsgE
 	   sender := sdk.MustAccAddressFromBech32(msg.Sender)
 
 	   	if !s.treasuryKeeper.HasBurnTaxExemptionContract(sdkCtx, msg.Contract) {
-	   		netFunds, err := s.taxKeeper.DeductTax(sdkCtx, sender, msg.Funds)
+	   		netFunds, err := s.taxKeeper.DeductTax(sdkCtx, sender, msg.Funds, false)
 	   		if err != nil {
 	   			return nil, err
 	   		}
@@ -89,7 +89,7 @@ func (s *WasmMsgServer) InstantiateContract(ctx context.Context, msg *wasmtypes.
 
 		sender := sdk.MustAccAddressFromBech32(msg.Sender)
 
-		netFunds, err := s.taxKeeper.DeductTax(sdkCtx, sender, msg.Funds)
+		netFunds, err := s.taxKeeper.DeductTax(sdkCtx, sender, msg.Funds, false)
 		if err != nil {
 			return nil, err
 		}
@@ -117,7 +117,7 @@ func (s *WasmMsgServer) InstantiateContract2(ctx context.Context, msg *wasmtypes
 
 		sender := sdk.MustAccAddressFromBech32(msg.Sender)
 
-		netFunds, err := s.taxKeeper.DeductTax(sdkCtx, sender, msg.Funds)
+		netFunds, err := s.taxKeeper.DeductTax(sdkCtx, sender, msg.Funds, false)
 		if err != nil {
 			return nil, err
 		}
diff --git a/x/tax/keeper/keeper.go b/x/tax/keeper/keeper.go
index 8686007c..1e2bb217 100644
--- a/x/tax/keeper/keeper.go
+++ b/x/tax/keeper/keeper.go
@@ -96,6 +96,7 @@ func (k Keeper) DeductTax(
 	ctx sdk.Context,
 	sender sdk.AccAddress,
 	amount sdk.Coins,
+	skipDeduct bool,
 ) (sdk.Coins, error) {
 	ctx.Logger().Info("Deducting tax", "sender", sender, "amount", amount, ctx.Value(types.ContextKeyTaxReverseCharge))
 
@@ -107,7 +108,7 @@ func (k Keeper) DeductTax(
 	taxes := k.ComputeTax(ctx, amount)
 	netAmount := amount.Sub(taxes...)
 
-	if !taxes.IsZero() {
+	if !taxes.IsZero() && !skipDeduct {
 		// Deduct the total tax amount from the sender and send to FeeCollector
 		if err := k.bankKeeper.SendCoinsFromAccountToModule(ctx, sender, authtypes.FeeCollectorName, taxes); err != nil {
 			return nil, err