Government's overall revenue earnings from the capital markets declined significantly after the fiscal year (FY) 2010-11 mainly because of poor market turnover.
In last five FYs, the government earned a total of above Tk 18.52 billion from both the stock exchanges (Dhaka Stock Exchange and Chittagong Stock Exchange).
According to information of Dhaka Stock Exchange (DSE), the government bagged a total of Tk 6.25 billion as revenue from both the bourses during the FY 2010-11.
During the FY 2011-12, the government's revenue declined by 32.09 per cent or Tk 2.0 billion to above Tk 4.24 billion compared to the value observed in the FY 2010-11.
During the FY 2012-13, the revenue earnings stood at above Tk 2.34 billion, which was 62.53 per cent less than the value observed in 2010-11.
The overall revenue earnings from the capital markets was above Tk 2.59 billion and above Tk 3.18 billion during the FY 2013-14 and FY 2014-15 respectively.
The government's revenue sharply dropped by 58.52 per cent or Tk 3.66 billion and 49.09 per cent or Tk 3.07 billion during the FY 2013-14 and FY 2014-15 respectively compared to the value observed in the FY 2010-11.
During last five FYs, the highest amount of government's revenue was earned during the FY 2010-11 due to continuous uprising trend observed in the market turnover value.
The DSE observed a daily turnover ranging between Tk 21.27 billion and Tk 32.49 billion from July 1, 2010 to December 5, 2010.
After observing the highest ever turnover worth Tk 32.49 billion on December 5, 2010 the turnover value started to decline drastically.
After the December (2010)-January (2011) stock market debacle, the daily turnover value came down to Tk 4.7 billion in the FY 2014-15.
The government's revenue earnings come from taxes imposed on transaction of shares executed in main bourses and over-the-counter (OTC) market, sales of sponsors' shares, BO (beneficiary owner's) account fee and corporate tax paid by the Central Depository Bangladesh Limited (CDBL).
The TREC (trading rights entitlement certificate) holders pay tax on turnover at a rate of 0.05 per cent whereas the sponsors pay 5.0 per cent tax on the sales of their shares.
From the DSE the government earned above Tk 4.47 billion as revenue during the FY 2010-11, whereas the amount was Tk 2.71 billion during FY 2011-12, Tk 1.27 billion during 2012-13, Tk 1.53 billion during FY 2013-14 and Tk 1.74 billion during 2014-15.
From Chittagong Stock Exchange (CSE), the government earned Tk 350 million during FY 2010-11, whereas the amount was Tk 250 million during FY 2011-12, Tk 121 million during 2012-13, Tk 110 million during 2013-14 and Tk 121 million during FY 2014-15.
The CDBL paid a total of Tk 3.16 billion as corporate tax during FY 2010-11 to FY 2014-15.
It is observed from DSE data that the government earned above Tk 1.24 billion as tax from sales of sponsor-directors' shares during FY 2010-11, whereas the earnings was Tk 1.08 billion during FY 2011-12, Tk 435 million during 2012-13, Tk 435 million during FY 2013-14 and Tk 650 million during FY 2014-15.
mufazzal.fe@gmail.com
Govt earns Tk 18.52b from stock mkt in last five fiscals
Mohammad Mufazzal | Published: July 14, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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