Dhaka, Bangladesh (BBN) – The government’s revenue earnings from the Dhaka Stock Exchange (DSE) fell 16 percent in January compared to a month ago as trading volume was on the decline amid ongoing political unrest.
The government bagged tax worth BDT 94.50 million in January, 2015 against BDT 112.90 million in December, 2014, registering a decline of 16 percent over the month, according to statistics from the Dhaka Stock Exchange (DSE).
Of the total revenue in January, BDT 55.69 million came from the brokerage commission while rest of BDT 38.76 million came from the share sales by sponsor-directors and placement holders, the DSE data showed.
The government’s earnings from DSE declined in the last four consecutive months as trading volume was on the decline at a stress amid bearish trend in the stock prices.
The DSE, on behalf of the government, collects the tax as brokerage commission and sponsor and placement shares sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
“Tax collection is related to trading volume, as trading volume was on the decline amid political turmoil from early January, so tax collection from DSE decline” said a DSE official.
The daily average turnover on the DSE came down to BDT 2.78 billion in January against BDT 3.00 billion in December, that contributed to lower tax collection as tax is calculated on turnover value, he said.
Stock indices also declined last month. DSEX, the benchmark index of the premier bourse, plunged 140.89 points or 2.89 per cent over the month to close at 4,724.04 points in the month of January.
However, in the first seven months of the current fiscal year (FY), the government’s earnings from DSE increased 22 percent compared to same period last fiscal.
In the first seven months (July’14 to January’15) of the current fiscal year DSE paid tax worth BDT 1,135.19 million against BDT 932.26 million in the same period last fiscal year, the DSE data showed.
BBN/SSR/AD-03Feb15-9:59 pm (BST)
