The government's revenue earnings from the prime bourse fell 22 per cent in November compared to a month ago as earnings from the share sales by sponsor-directors dropped significantly.
The government bagged tax worth Tk 136.16 million in November, which was Tk 174.34 million in the month of October, registering a decline of 22 per cent, according to statistics from the Dhaka Stock Exchange (DSE).
Of the total earnings in November, Tk 78.42 million came from the trading right entitlement certificate (TREC) holders' commission while Tk 57.74 million came from the share sales by the sponsor-directors and placement holders, the DSE data showed.
In October, the government earned Tk 73.36 million on TREC holders' commission while Tk 100.98 million on the share sales by sponsor-directors and placement holders, the DSE data showed.
"The overall revenue collection declined in November as share sales by sponsor-directors and placement holders fell drastically, although tax collection from the TREC holders' remained static," a DSE high official said.
The government earnings from the DSE in the first five months (July-November) in the current fiscal also dropped 26 per cent compared to the same period in the previous fiscal.
The government earned tax worth Tk 689.66 million in the July-November period of the FY 2015-2016, which was Tk 927.76 million in the same period in the fiscal year 2014-2015, the DSE statistics showed.
Meanwhile, the stock market observed volatile trading almost throughout the month of November and the prime index of the DSE advanced around 66.14 points or 1.46 per cent to settle the month at 4,880.99 compared to the month of October.
The daily average turnover on the DSE came down to Tk 3.28 billion in November which was Tk 3.67 billion in October, 2015, according to the DSE statistics.
"The earnings are related to turnover and share sales by sponsor-directors and placement holders. It's usual that tax will fall if turnover and sponsor-directors and placement holders share sales declined," said an analyst at a leading stockbroker.
DSE data showed that in the last three fiscal years, the revenue earnings of the government from the stock market declined due to slide in share prices.
DSE paid tax worth Tk 2.72 billion in the fiscal year 2011-12, Tk 1.27 billion in the fiscal year 2012-13, Tk 1.54 billion in the fiscal year 2013-14 and Tk 1.74 billion in the fiscal year 2014-15 on TREC holders' commission and share sales by sponsor-directors and placement holders.
However, DSE paid highest tax worth Tk 4.47 billion in the fiscal year 2010-11, when the market was bullish.
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