The government's revenue earnings from the Dhaka Stock Exchange (DSE) hit an 11-year high to Tk 2.91 billion in the just concluded Fiscal Year (FY) 2021-2022.
It was the highest revenue collection from the prime bourse since the stock market had developed bubbles that soon burst in the FY 2010-11, when a record Tk 4.47 billion revenue was collected, according to statistics from the main bourse.
Market operators said on the back of rising trading volume, the government earnings from the prime bourse rose accordingly, as earning is related to turnover.
"The buoyant investors have given a boost to the capital market, particularly in the first half of the immediate past fiscal year, contributing higher revenue collection," said a merchant banker.
The government bagged revenue worth Tk 2.91 billion in the FY 2021-22, as against Tk 2.66 billion in the FY 2020-21, registering an increase of 9.40 per cent year-on-year, according to statistics from the DSE.
Of the total earnings in the FY2021-22, Tk 2.18 billion came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission.
And Tk 729 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.
The DSE, on behalf of the government, collects tax as TREC holders' commission at a rate of 0.05 per cent and from sponsor directors' and placement holders' shares sales at a rate of 5.0 per cent. The bourse then deposits the amount to the public exchequer.
The prime bourse deposited the amount through the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer under Tax Zone-13 of the National Board of Revenue (NBR).
In FY 2020-21, Tk 1.80 billion came from the TREC holders' commission while Tk 863 million came from the share sales by sponsor-directors and placement holders.
The government earnings from the prime bourse rose as turnover increased, particularly in the first half of the last fiscal year, which helped higher revenue collection, said a DSE official.
The daily turnover, the important gauge, jumped to more than Tk 13 billion on average in the FY 2021-22, rising 30 per cent over the previous fiscal's average of around Tk 10 billion.
The daily turnover at the DSE recorded a decade high in few sessions during the FY 2021-22, particularly in August and September, as investors put fresh funds on stocks.
However, the key index of the prime bourse posted moderate gain in last fiscal year. Between July 1, 2021 and June 30, 2022, DSEX rose 157 points or 2.52 per cent to settle at 6,377 on June 30, 2022.
The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17, Tk 2.33 billion in FY 2017-18, Tk 2.51 billion in FY 2018-2019 and Tk 1.04 billion in FY 2019-20 on TREC holders' commission and share sales by sponsor-directors & placement holders.
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