The government revenue earnings from the Dhaka bourse rose 13 per cent month-on-month in January of the previous fiscal year as trading volume was on the rise riding on regulatory measures.
Market operators said buoyant investors have given boost to the capital market after a long time amid growing confidence.
"The government earnings from the DSE jumped as trading activities increased substantially during month of January as earnings are related to trading volume," said a leading broker.
Daily trade turnover on the DSE even climbed to more than 10 years high to Tk 25.46 billion on January 5, this year, since the country's stock market had developed bubbles that soon burst in 2010.
The government bagged revenue worth about Tk 390 million January, 2021, which was Tk 343 million a month earlier in December, rising more than 13 per cent, according to statistics available with the DSE.
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.
Of the total earnings in January, 2021, Tk 339 million came from the TREC holders' commission, popularly known as brokerage commission, while Tk 51 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.
The government earnings from the prime bourse rose significantly in January as trading activities increased substantially, said an analyst at a leading brokerage firm.
The government's earnings from the DSE also soared 119 per cent in the first seven months of the current fiscal year (FY) as the government earned Tk 1,841 million in the FY 2020-21 for July-January which was Tk 839 million in the same period of the previous fiscal year, the DSE data showed.
He noted that market turnover and index marked rise during the period under review amid growing confidence of investors to the market riding on regulatory measures to bring disciple in the market.
"The earnings are related to turnover. It's usual that tax will rise if turnover increased," he said.
The daily average turnover on the DSE soared to more than Tk 16 billion on an average in January, this year which was about Tk 10 billion in December, 2020.
DSEX, the prime index of the DSE, surged 1,661 points or 41.6 per cent in the first seven months of the current fiscal year (July 1 to January 31) while the DSEX added 248 points in January alone, the DSE data showed.
However, the government's revenue earnings from the DSE hit more than 10 years low to Tk 1.04 billion in the last FY 2019-20 due to bearish market trend and suspension of trading activities for more than two months due to Covid-19 outbreak.
The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17, Tk 2.33 billion in FY 2017-18 and Tk 2.51 billion in FY 2018-2019 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 FY 2010- 11, the highest in its history, when the market witnessed a wild trend before crashing.
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