Govt revenue earnings from DSE marks 16pc rise

The government's revenue earnings from the Dhaka Stock Exchange (DSE) marked 16 per cent rise in the first eight months of the current fiscal year (FY), compared to same period last fiscal as the trading volume was on the rise.
The government bagged tax worth around Tk 1,076.02 million in the first eight months (July'13 to February'14) of the current FY which was around Tk 927.91 million in the same period in the FY 2012-13, registering 16 per cent rise, according to statistics from the DSE.
The government earned the amount on brokerage commission and share sales by sponsor-directors and placement holders.
The DSE, on behalf of the government, collects the tax as brokerage commission and sponsor and placement shares at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
The month-on-month tax receipt from DSE also rose 3.30 per cent in February compared to January, 2014. In February, the government earned tax worth Tk 143.80 million against Tk 139.20 in January this year.
DSE officials said the tax collection increased in first eight months in the current fiscal year due to higher transactions following the rising trend in stock prices in recent months.
"The tax collection from DSE remained rise as trading volume was increased and market was showed almost stable in recent months," he added.
"The earnings are related to turnover. It's usual that tax will rise if turnover increases," Akter H Sannamat, managing director of Union Capital told The FE.
"The turnover marked a rise in first eight months in current fiscal year compared to same period in last fiscal, so did tax," he added.
However, DSE data showed that in the last three fiscal years, the revenue earnings of the government from the DSE declined at a stress due to lower turnover value following slide in shares prices.
In fiscal year 2010-11, DSE paid tax worth Tk 4.46 billion, in FY 2011-12 DSE paid worth Tk 2.72 billion and FY 2012-13 DSE paid tax worth Tk 1.27 billion on brokerage commission and share sales by sponsor-directors and placement holders.