The government's revenue earnings from the Dhaka Stock Exchange (DSE) fell further by 36.68 per cent in December compared to November, 2014 as trading volume was on the decline.
The government bagged tax worth Tk 112.90 million in December against Tk 178.30 million in November, registering a decline of 36.68 per cent over the month, according to statistics from the Dhaka Stock Exchange (DSE).
Of the total revenue in December, Tk 60.13 million came from the brokerage commission while rest Tk 52.77 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
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.
The government's earnings from DSE declined in the last three consecutive months as trading volume was on the decline amid bearish trend in the stock prices.
"Tax collection is related to trading volume and value as investors were cautious about taking fresh positions following year-closing in December, turnover value declined substantially," said a DSE official.
The daily average turnover on the DSE came down to Tk 3.00 billion in December against Tk 5.76 billion in November, that contributed to lower tax collection as tax is calculated on turnover value, 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.
He also said: "The tax flow will rise when the market will be back on track."
However, in the first six months of the current fiscal year (FY), the government's revenue earnings from DSE rose 31 per cent compared to same period last fiscal.
In the first six months (July to December'14) of the current fiscal year DSE paid tax worth Tk 1,040.69 million compared to Tk 793.06 million in the same period last fiscal year, the DSE data showed.
The country's stock market passed a relatively stable year in 2014 compared to the last three years since the market debacle in early 2011 though it could not get the expected result, said an analyst.
DSEX, the prime index of the DSE registered 598.41 points or 14.03 per cent gain year-on-year in 2014.
The daily average turnover stood at Tk 4.99 billion in 2014 compared to Tk 4.00 billion in 2013, up by 24.75 per cent over the year, according DSE statistics.
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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