Dhaka, Bangladesh (BBN)– The sluggish trading activities on the capital market affected the government’s revenue earnings from the Dhaka Stock Exchange (DSE) as it fell 8.0 percent in the first 10 months in the current fiscal year (FY) compared to the same period last fiscal.
However, month-on-month, the government earnings from the DSE rose 5.83 percent in April compared to the month of March as sponsor/directors shares sales increased significantly, which helped higher revenue collection, officials explained.
In April, the government received revenue worth BDT 125.34 million while the revenue collection in March was BDT 118.43 million, the DSE data showed.
The government bagged tax worth BDT 1,314.44 million in July’15 to April’16 period of the fiscal year 2015-2016, which was BDT 1,433.81 million in the corresponding period of the previous fiscal, according to statistics from 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 the tax as TREC holders’ commission and share sales by sponsor-directors and placement holders at the rate of 0.05 percent and 5.0 percent respectively and deposits the amount to the government exchequer.
“The earnings are related to turnover. It’s usual that tax will fall if turnover declines,” said an analyst at a leading brokerage firm.
The turnover marked a decline in the 10 months of the current FY, compared to the same period of last FY, so did tax, he added.