The government revenue earnings from the Dhaka Stock Exchange (DSE) fell 24 per cent month-on-month in October this year on the back of falling trade volumes.
Market insiders said sluggish trading activities coupled with low share sales by sponsor-directors affected the government's revenue earnings from the Dhaka Stock Exchange (DSE) in October.
The daily average turnover in October came down to Tk 6.90 billion while daily average turnover was Tk 10.50 billion in September, registering a decline of 34 month-on-month in October, according to statistics from the DSE.
The government bagged tax worth Tk 233 million in October against Tk 308 million in September 2017, falling more than 24 per cent, according to DSE data.
Of the total revenue earning in October, Tk 109 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission and Tk 76 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
The DSE, on behalf of the government, collects tax as TREC holders' commission and sponsor-directors and placement holders' shares sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
"Declining turnover value hit the government earnings from the DSE in October," said an official of the premier bourse.
"The earnings are related to turnover. It's usual that tax will fall if turnover declines," said an analyst at a leading brokerage firm, adding "As the turnover marked a decline in October, compared to September, so did tax".
However, the government earnings from the DSE in the four months for July-October period of the current fiscal year (FY) rose 132 per cent as total revenue collection stood at Tk 1,064 million in four months of FY 2017-18 which was Tk 459 million in the same period of the previous fiscal, the DSE data shows.
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