Dhaka, Bangladesh (BBN) - The revenue earnings of the government from the Dhaka Stock Exchange (DSE) dropped by 25 percent in March as the trading volume was on the decline, officials said.
The government’s earnings as direct tax from the DSE dropped by 25 percent to BDT 107.48 million in March from BDT 143.80 million in the previous month, according to the DSE statistics.
Of the total revenue, the government earned tax worth Tk 73.02 million in the form of brokerage commission and BDT 34.46 million in the form of fee on share sales by sponsor-directors and placement holders in March.
The DSE, on behalf of the government, collects the tax as brokerage commission and sponsor and placement shares at the rate of 0.05 percent and 5.0 percent respectively and deposits the amount to the government exchequer.
"The tax collection declined in March due to lower transaction following the sluggish trend of stock prices," said a DSE official, adding that a bearish trend in the capital market has also pulled down the government's earnings from stocks, as the trading volume is on the decline.
The DSE witnessed a daily average turnover of Tk 3.62 billion in March while it was Tk 5.48 billion in February.
BBN/SSR/AD-07Apr14-10:31 am (BST)