Govt earnings from DSE mark 28pc rise in August

The government's revenue earnings from the Dhaka Stock Exchange (DSE) rose 28 per cent month-on-month in August on the back of rising turnover value.
Analysts said on the back of rising turnover value, the government earnings from the premier bourse rose accordingly, as earning is related to turnover.
The government bagged tax worth Tk 109 million in August against Tk 85 million in July 2016, registering an increase of 28 per cent over the month, according to statistics from the DSE.
Of the total earnings in August, Tk 96.30 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission and only Tk 12.54 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.
The government earnings from DSE marked a rise as turnover value increased in August compared to the month of July, said a DSE official.
"The earnings are related to turnover. It's usual that tax collection will rise if turnover increased," the DSE official told the FE.
The daily average turnover on the DSE rose to Tk 4.58 billion in August, the second month of the current fiscal year, which was Tk 3.84 billion a month ago, the DSE data showed.
DSEX, the benchmark index of the DSE, however, remained almost unchanged as it opened the month of August at 4,525.35 and closed the month at 4,526.58.
"The investors were active both sides of the trading fence almost throughout the month in August which helped higher turnover, resulting higher tax collection," said an analyst at a leading stockbroker.
However, he said, though the government's earnings from DSE increased in August, it is still very low.
AB Mirza Azizul Islam, former finance adviser to the caretaker government, emphasized for brining good quality issues in capital market to enhance government's revenue earnings from the stock trading.
However, the government earnings fell 26 per cent year-on-year in August 2016. The government earned Tk 109 million in August, the second month of the current fiscal year, which was Tk 148 million in the same month in the previous fiscal, the DSE statistics showed.
DSE data showed that in the last four fiscal years, the revenue earnings of the government from the stock market declined due to slide in stock prices.
The government revenue collection from the 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, Tk 1.74 billion in the fiscal year 2014-15 and Tk 1.58 billion in the just concluded fiscal year.
However, the highest revenue collection of Tk 4.47 billion came in the fiscal year 2010-11, when the market was bullish.
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