The government revenue earnings from the Dhaka Stock Exchange (DSE) fell 30.6 per cent month-on-month in February on the back of falling trade volumes.
The government bagged tax worth Tk 107.94 million in the second month of 2016, which was Tk 155.42 million in January, 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 share holders.
Of the total earnings in February, Tk 86.42 million came from the TREC holders' commission and Tk 21.52 million from the share sales by sponsor-directors and placement holders, the DSE data showed.
The DSE, on behalf of the government, collects the revenue 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 amounts to the government exchequer.
In eight months (July-February) of the current fiscal year (FY), the government earning stood at Tk 1063.67 million from the DSE, down by 12.97 per cent over the same period in the previous fiscal.
The month-on-month revenue collection from the premier bourse declined significantly in February due to lower transactions following the sluggish trend in stock prices, a DSE official said.
"A bearish trend in the capital market affected the government's earnings from the stock trading as the trading volume was on the decline," he said.
The daily average turnover on the DSE came down to Tk 4.32 billion in February, which was Tk 5.48 billion in January, 2016, the DSE data showed.
DSEX, the benchmark index of the DSE, also lost 30 points or 0.64 per cent in February.
"The earnings are related to turnover. It's usual that tax will fall if turnover declines," said an analyst at a leading stockbroker.
"The turnover marked a decline in February, compared to January, so did tax," he said.
DSE data showed that in the last three fiscal years, the government revenue earnings from the stock market declined due to slide in stock prices.
The government revenue collection from DSE was 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 and Tk 1.74 billion in the FY 2014-15.
However, the highest revenue collection of Tk 4.47 billion was in the FY 2010-11, when the market was bullish.
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Govt earnings from DSE drop 30.6pc in February
Babul Barman | Published: March 04, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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