Dhaka, Bangladesh (BBN) – The government’s revenue earnings from the Dhaka Stock Exchange (DSE) fell 38 percent year-on-year in eight months in the current fiscal year as trading volume was on the decline.
Brokers said sluggish trading activities coupled with low share sales by sponsor-directors affected the government’s revenue earnings from the DSE during the period under review.
The government bagged revenue worth BDT 1,001 million in July-February of the fiscal year (FY) 2019-2020 which was BDT 1,627 million in the same period last fiscal, according to data 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 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.
However, the government earnings from the DSE rose 30 percent month-on-month in February compared to January 2020, the DSE data showed.
The government bagged revenue worth about BDT 155 million in February which was BDT 119 million in January 2020.
Depressed market trend coupled with falling turnover value hit the government earnings from the prime bourse, said an analyst.
He noted that the earnings are related to turnover. It’s usual that tax will fall if the turnover declines.
Between July 1 and February 27 of the current FY, the DSEX eroded 904 points or 17 percent to reach at 4,480 on February 27, 2020.