Dhaka, Bangladesh (BBN)-The government revenue earnings from the Dhaka Stock Exchange (DSE) hit 13-month high in August as trading volume was on the rise.
The government received BDT 126.58 million in tax from stock trading in August this year from DSE, the highest since July 2013.
In July 2013, the government bagged BDT 153.02 million in tax from stock trading from DSE.
The daily average turnover in August jumped to BDT 6.33 billion, which was only BDT 2.88 billion in the previous months - July, according to data from the DSE.
The prime index of the DSE also crossed 4,500-point mark in August, gaining 134 points or 3.03 percent over the previous month- July.
The month-on-month government’ earrings from DSE also shot up by 208 percent in August compared to July, this year. In July, the government earned tax only BDT 41.15 million.
Tax collection is related to trading volume and value. More trading of stocks generates more tax for the government, DSE officials said.
The DSE, on behalf of the government, collects the tax as brokerage commission at 0.05 per cent and deposits the amount to the state coffer.
The government also earned higher tax from sales of sponsor and placement shares in August than the last month.
It bagged BDT 74.82 million in tax from share sales by sponsor shareholders last month which was BDT 24.05 million a month ago.
BBN/BB/ANS-03Sept14-8:30pm (BST)