The month-on-month government's revenue earnings from the Dhaka Stock Exchange (DSE) marked 78 per cent rise in November as the trading volume was on the rise in the month of November.
The government bagged tax worth Tk 144.21 million in November, 2013 which was Tk 81.08 million in October, 2013, registering 78 per cent increase, according to statistics from the DSE.
The government earned the amount on brokerage commission and share sales by sponsor-directors and placement holders.
Among the total earnings of Tk 144.21 million in November, the fifth month of the current fiscal year, the government earned Tk 109.18 million on brokerage commission and Tk 35.03 million on share sales by sponsor-directors and placement holders.
The DSE, on behalf of the government, collects the tax as brokerage commission and sponsor and placement shares at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
Meanwhile, the DSE paid tax worth Tk 666.36 million in the first five months (July-November) in the current fiscal year against Tk 724.32 million in the corresponding period in the fiscal year 2012-13, DSE data showed.
"The tax collection increased in November due to higher transaction following the rising trend in stock prices in November," said a DSE official.
The tax collection from DSE remained rise as the market backed on right track almost throughout in November, he said.
The foreign investors were also on buying mood almost throughout the month of November as they found the time just right to take positions at lower prices which also contributed to higher turnover, he added.
Foreign investors bought shares worth Tk 3.42 billion and sold shares worth Tk 657.16 million to take their net investment for the month to Tk 2.76 billion in November, DSE data showed.
The DSE witnessed a daily average turnover Tk 5.45 billion in November, 2013 while it was only Tk 2.89 billion in October, 2013 which contributed to the higher revenue collection.
"The earnings are related to turnover. It's usual that tax increased as turnover rose," said Akter Hossain Sannamat, managing director of Union Capital.
"The turnover marked a rise in November compared to October, so did tax," he said.
However, the DSE data showed that in the last three fiscal years, the revenue earnings of the government from the DSE declined at a stress due to lower turnover value following slide in stocks 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.
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