The government revenue earnings from Dhaka Stock Exchange (DSE) jumped 51 per cent in seven months for July-January period of the current fiscal year compared to the same period last fiscal, powered by rising trading volume.
The government bagged revenue worth Tk 2,786 million in the seven months for July-January of the fiscal year (FY) 2021-22, as against Tk 1,842 million in the same period of the previous fiscal, showing a 51 per cent growth, according to statistics with the prime bourse.
Of the total earnings, Tk 2,334 million came from the TREC holders' commission, popularly known as brokerage commission, while Tk 452 million from the share sales by sponsor-directors and placement holders during the period under review, the DSE data shows.
In FY 2020-21 for July-January, Tk 1,369 million came from the TREC holders' commission while Tk 473 million came from the share sales by sponsor-directors and placement holders.
The government earned the amount on TREC (trading right entitlement certificate) holders' commission and share sales by sponsor-directors and placement holders.
The DSE, on behalf of the government, collects tax as TREC holders' commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
Meanwhile, the prime bourse has started availing the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer. Recently, it has paid tax under Tax Zone-13 of the National Board of Revenue (NBR) using the e-TDS system.
The government earnings from the prime bourse rose as trading activities increased substantially during the period for July-January, said a DSE official.
"The earnings are related to turnover. It's usual that tax will rise if turnover increases," he said.
He noted that as the turnover marked an increase in July-January period in the current fiscal year compared to that of the same period of the previous year, so did the tax.
The daily turnover, the important gauge, rose to about Tk 15.25 billion on an average in seven months for July-January in the current fiscal year which was Tk 12.50 billion in the same period in the previous fiscal year, according to the DSE data.
The prime index of the DSE also increased 706 points or 11.36 per cent in the first seven months of the current fiscal year.
The government's revenue earnings from the DSE registered a 10-year high to Tk 2.66 billion in the FY 2020-21 as the DSE turnover recorded a decade high in few sessions in the last fiscal year.
However, in the FY2019-20, the government's earnings from the DSE plunged more than 10 years low to Tk 1.04 billion due to sluggish market turnover coupled with trading suspension for more than two months due to Covid-19 outbreak.
The DSE paid tax worth Tk 2.72 billion in FY2011-12, Tk 1.27 billion in FY2012-13, Tk 1.54 billion in FY2013-14, Tk 1.74 billion in FY2014-15, Tk 1.58 billion in FY2015-16, Tk 2.46 billion in FY2016-17, Tk 2.33 billion in FY2017-18 and Tk 2.51 billion in FY2018-2019 on TREC holders' commission and share sales by sponsor-directors and placement holders.
However, the DSE paid tax worth Tk 4.47 billion in the FY2010-11, the highest in its history, when the market witnessed a wild trend before crashing.
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