The government's revenue earnings from the Dhaka Stock Exchange (DSE) fell 6.42 per cent or Tk 15.99 million in October compared to a month ago due to reduced trade volumes and trading sessions.
The government bagged tax worth Tk 233.43 million in October against Tk 249.42 million in September, registering a decline of 6.42 per cent over the month, according to statistics from the Dhaka Stock Exchange (DSE).
Of the total tax in October, Tk 127.65 million came from the brokerage commission while rest Tk 105.78 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.
Week-long vacation in October on the occasion of Eid-ul-Fitr, reduced trading sessions which contributed to lower tax collection in October, said a market insider.
A total of 17 trading sessions took place in October as against 22 trading sessions in the month of September.
The daily average turnover on the DSE was Tk 7.50 billion in October as against Tk 7.98 billion in September, which contributed to lower tax collection as tax is calculated on turnover value.
"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 October due to lower transactions 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.
The government's tax collection from DSE rose in the last fiscal year compared to previous fiscal as trading volume on the rise.
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 was Tk 4.71 billion in the last FY which was Tk 3.70 billion in the 2012-2013, according to DSE statistics.
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