Tax receipts from DSE down 11pc in Jul-Nov

The government revenue earnings from the premier bourse fell 11 per cent year-on-year in the first five months of the current fiscal year (FY) on the back of falling trade volumes.
Market insiders said on the back of falling trade volumes, the government earnings from the Dhaka Stock Exchange (DSE) fell accordingly, as earnings is related to trading volume.
The government bagged tax worth about Tk 611 million in the first five months for July-November period of the FY 2016-2017, which was Tk 689 million in the same 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 revenue earnings of Tk 611 million in the first five months of the FY 2016-17, Tk 494 million came from the TREC holders' commission and Tk 117 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 collected Tk 689 million in the first five months for July-November period of the FY 2015-16. Of them, Tk 462 million came from TREC holders' commission and Tk 227 million came from share sales by sponsor-directors and placement holders, according to DSE data.
The month-on-month government's earnings from DSE fell slightly by 2.56 per cent in November as total revenue earning stood at Tk 152 million in November which was Tk 156 million in October, 2016, the DSE data showed.
Meanwhile, DSEX, the benchmark index of the DSE, soared 204 points or 4.45 per cent in November to settle at 4,801.24 in the last session of November, 2016.
The daily average turnover for the month of November stood at Tk 5.61 billion which was Tk 5.28 billion in October.
"The earnings are related to turnover. It's usual that tax will fall if turnover declines," said an analyst at a leading brokerage firm.
"The turnover marked a decline in July-November period of the current FY compared to same period of the previous fiscal, so did tax," he said.
DSE data showed that in the last five fiscal years, the revenue earnings of the government from the stock market declined due to lower turnover value following slide in shares prices.
DSE paid tax worth Tk 2.72 billion in the FY 2011-12, Tk 1.27 billion in the FY 2012-13, Tk 1.54 billion in the FY 2013-14, Tk 1.74 billion in the FY 2014-15 and Tk 1.58 billion in the FY 2015-16 on TREC holders' commission and share sales by sponsor-directors and placement holders.
However, DSE paid tax worth Tk 4.47 billion in the fiscal year 2010-11, the highest in its history, when the market saw the wild rally.
babulfexpress@gmail.com