Govt earnings from DSE down 16pc in 7 months

The government revenue earnings from the Dhaka Stock Exchange (DSE) fell 16 per cent in the first seven months of the current fiscal year compared to the same period of the previous fiscal as trading volume was on the decline.
The government bagged tax worth Tk 955.73 million in July-January period of the fiscal year 2015-2016, which was Tk 1,135.18 million in the corresponding period of the previous fiscal, according to statistics from the DSE.
The government earned the amount on TREC (trading right entitlement certificate) holders' commission and share sales by sponsor-directors and placement holders.

Of the total earnings in the first seven months of the current fiscal, Tk 668.21 million came from the TREC holders' commission and Tk 287.52 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
The DSE, on behalf of the government, collects the tax as TREC holders' commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
On the other hand, the government earned Tk 1,135.18 million in July-January period of the fiscal year 2014-15.
However, the month-on-month the government earnings from the DSE rose by 40 per cent in January compared to the month of December as sponsor/directors shares sales increased significantly, which helped higher revenue collection.
In January, the government received revenue worth Tk 155.42 million while the revenue collection in December was Tk 110.66 million.
"Though the month-on-month revenue collection rose substantially in January, overall revenue collection declined due to lower transactions following the sluggish trend in stock prices," said a DSE official.
"A bearish trend in the capital market affected the government's earnings from the stock trading as the trading volume was on the decline," he said.
The daily average turnover on the DSE came down to Tk 4.22 billion in the outgoing calendar year which was Tk 4.99 billion in 2014, the DSE data showed.
DSEX, the benchmark index of the DSE, also lost 235 points or 4.84 per cent last calendar year compared to the previous year.
"The earnings are related to turnover. It's usual that tax will fall if turnover declines," said an analyst at a leading stockbroker.
The turnover marked a decline in the seven months of the current fiscal, compared to same period last fiscal, so did tax," he said.
DSE data showed that in the last three fiscal years, the revenue earnings of the government from the stock market declined due to slide in stock prices.
The government revenue collection from DSE was Tk 2.72 billion in the fiscal year 2011-12, Tk 1.27 billion in the fiscal year 2012-13, Tk 1.54 billion in the fiscal year 2013-14 and Tk 1.74 billion in the fiscal year 2014-15.
However, the highest revenue collection of Tk 4.47 billion was in the fiscal year 2010-11, when the market was bullish.
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