A view of Dhaka Stock Exchange in Bangladesh

Dhaka, Bangladesh (BBN) – Bangladesh government’s revenue earnings from the Dhaka Stock Exchange (DSE) marked 12 per cent rise month-on-month in April, 2017 as share sales by sponsor-directors and placement holders on the rise.
Brokers said the government earnings from the Dhaka bourse rose as share sales by sponsor-directors and placement holders increased significantly in April compared to March, which helped higher tax collection.
The government bagged tax worth about BDT 353 million in April, which was BDT 313 million in the month of March, 2017, 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.
Of the total revenue earnings in April, BDT 153 million came from the TREC holders’ commission while BDT 198 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.

In March, 2017, the government earned BDT 313 million from DSE. Of the total revenue earnings in March, BDT 218 million came from the TREC holders’ commission and BDT 95 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.

In 10 months for July-April period of the current fiscal year, the government’s earnings from the DSE also marked 83 percent rise compared to the same period of the previous fiscal year.

The government bagged tax worth about BDT 2.93 billion in July-April period of the current FY, against BDT 1.30 billion in the same period of the previous FY, the DSE data shows.

DSE data shows that in the last five fiscal years, the revenue earnings of the government from the stock market declined due to lower turnover value following slide in shares prices.

DSE paid tax worth BDT 2.72 billion in the FY 2011-12, BDT 1.27 billion in the FY 2012-13, BDT 1.54 billion in the FY 2013-14, BDT 1.74 billion in the FY 2014-15 and BDT 1.58 billion in the FY 2015-16 on TREC holders’ commission and share sales by sponsor-directors and placement holders.

However, DSE paid tax worth BDT 4.47 billion in the fiscal year 2010-11, the highest in its history, when the market saw a mad rally.

BBN/SSR/SR