The government revenue earnings from the Dhaka Stock Exchange (DSE) fell 46 per cent month-on-month in July amid reduced trading hours and weak volumes owing to the occasion of Ramadan.
The government bagged tax worth Tk 65.20 million in July which was Tk 120.85 million in June, 2014, taking a decline of 46 per cent, according to statistics from the Dhaka Stock Exchange (DSE).
Of the total tax in July, Tk 41.15 million came from the brokerage commission while rest of Tk 24.05 million came from the 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 sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
Trading hours on the premier bourse had been reduced by an hour for Ramadan, which began on June 30. Furthermore, trading took place on 18 days in July as against 22 days in June.
The daily average turnover on the DSE also declined to Tk 2.88 billion in July from Tk 3.36 billion the month of June.
Tax collection is related to trading volume and value. More trading of stocks generates more tax for the government, said a DSE official.
"Tax collection decreased in the July due to lower transactions, reduced trading hour and reduced trading sessions," he said.
"The revenue earnings are related to turnover. It's usual that tax will fell if turnover declines," said Akter H Sannamat, managing director of Union Capital.
DSE data showed that in the last three fiscal years, the revenue earnings from the DSE declined at a stress due to lower turnover value following slide in shares prices.
In fiscal year 2010-11, DSE paid highest tax worth Tk 4.47 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.
However, tax collection from the DSE rose in the just concluded fiscal year against the previous fiscal amid rising trading volume. The government bagged tax worth around Tk 1.54 billion in the FY 2013-2014 against Tk 1.27 billion in the FY 2012-2013.
The daily average turnover in the just concluded FY was Tk 4.71 billion, which was Tk. 3.70 billion in the 2012-2013, the DSE data showed.
Revenue earning from DSE dips 46 per cent
Babul Barman | Published: August 06, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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