The month-on-month revenue earnings of the government from the Dhaka Stock Exchange (DSE) dropped by 25 per cent in March as the trading volume was on the decline.
The government bagged tax worth Tk 107.48 million in March which was Tk 143.80 million in February 2014, registering 25 per cent decline, according to statistics from the DSE.
Of the total revenue, the government earned tax worth Tk 73.02 million in the form of brokerage commission and Tk 34.46 million in the form of fee on share sales by sponsor-directors and placement holders in March.
The DSE, on behalf of the government, collects the tax as brokerage commission and sponsor and placement shares at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
"The tax collection declined in March due to lower transaction following the sluggish trend of stock prices," said a DSE official.
"A bearish trend in the capital market has also pulled down the government's earnings from stocks, as the trading volume is on the decline," he said.
However, he expected that the tax collection from DSE will rise in future when the market would be back on the right track.
The DSE witnessed a daily average turnover of Tk 3.62 billion in March while it was Tk 5.48 billion in February.
"The earnings are related to turnover. It's usual that taxes will fall, if the turnover declines," said Akter H Sannamat, managing director of Union Capital.
"The turnover marked a decline in March, compared to February. So did the tax," said Mr Sannamat, also vice president of Bangladesh Merchant Bankers Association (BMBA).
However, the government's earnings marked 21.6 per cent rise in the first nine months of the current fiscal year (FY) compared to same period last fiscal from the DSE.
In the first nine months (July'13 to March'14) of the current FY DSE paid tax worth around Tk 1,183.49 million against Tk 973.29 million in the same period in the FY 2012-13, the DSE data showed.
The revenue earnings of the government from the DSE declined at a stress in the last three consecutive fiscal years, due to lower turnover value following slide in shares prices, DSE data showed.
In fiscal year 2010-11, DSE paid tax worth Tk 4.46 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.
Revenue earnings from DSE decline 25 per cent
Babul Barman | Published: April 07, 2014 00:00:00 | Updated: April 06, 2014 22:52:29
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