Revenue earnings from DSE down by 24pc in November

The government's revenue earnings from the Dhaka Stock Exchange (DSE) fell further by 24 per cent in November compared to a month ago as trading volume was on the decline.
The government bagged tax worth Tk 178.29 million in November against Tk 233.43 million in October, registering a decline of 24.62 per cent over the month,  according to statistics from the Dhaka Stock Exchange (DSE).
Of the total tax in November, Tk 115.49 million came from the brokerage commission while rest Tk 62.80 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 brokerage commission and sponsor and placement shares sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
A total of 20 trading sessions took place in November as against 17 trading sessions in the month of October.
"Tax collection is related to trading volume and value as investors were cautious about taking fresh positions. More trading of stocks generates more tax for the government," he said.
The daily average turnover on the DSE came down to Tk 5.76 billion in November against Tk 7.50 billion in October, which contributed to lower tax collection as tax is calculated on turnover value, said a DSE official.
A bearish trend in the stock market has pulled down the government's earnings from stocks in November, as the trading volume is on the decline, he added.
The prime index of the DSE plunged 403.81 points or 7.80 per cent during the month of November. DSEX opened at 5,173.23 points and closed the month at 4,769.42 points.
The revenue earnings are related to turnover. It's usual that tax will fell if turnover declines," said Akter H Sannamat, managing director of Union Capital.
He also said: "The tax flow will rise when the market will be back on track."
The government's tax collection from DSE rose in the last fiscal year compared to previous fiscal as trading volume on the rise.
The government bagged tax worth around Tk 1.54 billion in the FY 2013-2014 against Tk 1.27 billion in the FY 2012-2013.
The daily average turnover was Tk 4.71 billion in the last FY which was Tk 3.70 billion in the 2012-2013, according to DSE statistics.
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