Revenue earnings show 28pc rise in DSE

The government's revenue earnings from the Dhaka Stock Exchange (DSE) marked a 27.47 per cent rise in April compared to a month ago as the trading volume was on the rise.
The government bagged tax worth Tk 137.01 million in April which was worth Tk 107.48 million in March 2014, registering an increase of 27.47 per cent, according to statistics from the DSE.
Of the total revenue, the government earned tax worth Tk 97.98 million in the form of brokerage commission and Tk 39.03 million in the form of fee on share sales by sponsor-directors and placement holders in April.
The DSE, on behalf of the government, collects the tax as brokerage commission and share sales by sponsor 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.
The government's earnings also marked 30.29 per cent rise in the first 10 months of the current fiscal year (FY) compared to the same period last fiscal year from the DSE.
In the first 10 months (July'13 to April'14) of the current FY, DSE paid tax worth Tk 1,320.05 million against Tk 1,013.14 million in the same period in the FY 2012-13, the DSE data showed.
Tax collection is related to trading volume and value. More trading of stocks generates more tax for the government, DSE officials said.
"The tax collection increased in April due to higher transaction following the rising trend of stock prices almost throughout the April," he said.
The DSE witnessed a daily average turnover of Tk 4.66 billion in April while it was Tk 3.62 billion in March.
"The earnings are related to turnover. It's usual that taxes will rise, if the turnover rises," said Akter H Sannamat, managing director of Union Capital.
 "The turnover marked an increase in April, compared to March. So did the tax," said Mr Sannamat, also vice president of Bangladesh Merchant Bankers Association (BMBA).
However, the revenue earnings of the government from the DSE declined at a stress in the last three consecutive fiscal years, 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.