The government’s revenue earnings from the Dhaka Stock Exchange (DSE) fell 20 per cent in April compared to March, 2015 as the stock market witnessed lacklustre trading amid shaky investors’ confidence.
The government bagged tax worth Tk 93.91 million in April against Tk 117.74 million in March, 2015, registering a decline of 20 per cent over the month, according to statistics from the DSE.
Of the total revenue in April, Tk 77.56 million came from the brokerage commission and only Tk 16.35 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
The DSE, on behalf of the government, collects tax as brokerage commission and sponsor and placement shares sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
“Tax collection is related to trading volume and investors were cautious about taking fresh position almost throughout the month of April amid fear of further fall of stock prices,†said a DSE official.
DSEX suffered a loss of about 483 points in April, hitting fresh 18-month low as investors were on selling spree, fearing further fall of stock prices. However, daily average turnover rose to Tk 3.87 billion in April compared to Tk 2.82 billion in March.
Accordingly, tax collection from brokerage firms in April increased to Tk 77.56 million against Tk 61.39 million in March. But sponsor-directors and placement holders share sales dropped significantly in April to Tk 16.35 million while it was Tk 56.35 million in March.
Though turnover rose in April following selling pressure, sponsor-directors and placement holders share sales dropped sharply, which contributed to lower tax collection, said Akter Hossain Sannamat, managing director of Union Capital adding that the tax flow will rise when the market will be back on right track.
However, in the first 10 months of the current fiscal year (FY), the government’s revenue earnings from DSE increased 8.58 per cent compared to same period last fiscal.
In the first 10 months (July’14 to April’15) of the current fiscal year, DSE paid tax worth Tk 1,433.83 million against Tk 1,320.52 million in the same period last fiscal year, the DSE data showed.
The government bagged tax worth around Tk 1.54 billion from DSE in the FY 2013-2014 against Tk 1.27 billion in the FY 2012-2013.
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Govt revenue earnings from prime bourse down 20pc
Babul Barman | Published: May 07, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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