Tax receipts from DSE down 16pc in July

The government's revenue earnings from the premier bourse fell 16 per cent year-on-year in July, the first month of current fiscal year, compared to the same month in the previous fiscal, as trading volume was on the decline.
Market insiders said on the back of falling turnover value, the government earnings from the premier bourse dropped accordingly, as earning is related to turnover.
The government bagged tax worth nearly Tk 85 million in July, 2016, against Tk 101 million in July, 2015, registering a decline of 16 per cent, according to statistics from the DSE.
Of the total revenue earning in July in the current fiscal year, Tk 63.74 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission and only Tk 21.03 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
The month-on-month earnings from the DSE also saw a sharp decline. The government earned Tk 85 million in July, 2016, which was Tk 161.46 million a month ago, falling 48 per cent, the DSE statistics 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.
"A bearish trend in the capital market affected the government's earnings from the stock trading as the trading volume was on the decline," said an official of the premier bourse.
The daily average turnover on the DSE came down to Tk 3.84 billion in first month of the current fiscal year, which was Tk 4.77 billion in July 2015, the DSE data showed.
"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 of the current fiscal year, compared to same month in the previous fiscal, so did tax," he said.
DSE data showed that in the last three 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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