Tax receipts from DSE up 11pc in first half

The government revenue earnings from the Dhaka bourse marked 11 per cent rise in first half (July-December) of the current fiscal year (FY) compared to the same period a year ago, as trading volume was on the rise.
Analysts said the government earnings from the DSE rose as trading volume increased significantly in November and December, which helped higher tax collection, as earnings is related to trading volume.
The government bagged tax worth about Tk 886 million in July-December period of the FY 2016-2017, which was Tk 800 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.
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.
Of the total revenue earnings of Tk 886 million in the first six months of the current FY, Tk 672 million came from the TREC holders' commission and Tk 214 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.
The month-on-month government's earnings from DSE also soared 81 per cent in December as total revenue earning stood at Tk 275 million in December which was Tk 152 million in November, 2016, the DSE data shows.
Between July 1 and December 29, 2016, DSEX, the benchmark index of the DSE, soared 541 points or 12 per cent during July-December period of 2016, while year-on-year return was 406 points or 8.80 per cent.
The daily average turnover for the just concluding calendar year stood at Tk 4.98 billion, which was 17 per cent higher than the previous year.
"The earnings are related to turnover. It's usual that tax mobilisation will rise if turnover increases," said a DSE official.
"The turnover marked a rise in July-December period of the current FY compared to same period of the previous fiscal, so did tax," he said.
"A consistent rally with higher transaction, especially in the last two months of the year, helped to higher revenue collection from the premier bourse," said an analyst at a leading brokerage firm.
DSE data shows 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 a mad rally.
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