Dhaka, Bangladesh (BBN)-The Bangladesh’s government’s revenue earnings from the prime bourse dropped 22 per cent in November compared to October, 2015 as earnings from the share sales by sponsor-directors declined.
The government earned tax worth BDT 136.16 million in November, which was BDT 174.34 million in the month of October, according to statistics from the Dhaka Stock Exchange (DSE).
“The overall revenue collection declined in November as share sales by sponsor-directors and placement holders fell drastically, although tax collection from the TREC holders’ remained static,” said an official of DSE.
Of the total earnings in November, BDT 78.42 million came from the trading right entitlement certificate (TREC) holders’ commission while BDT 57.74 million came from the share sales by the sponsor-directors and placement holders, the DSE data showed.
The Bangladesh government’s earnings from the DSE in the first five months (July-November) in the current fiscal also dropped 26 per cent compared to the same period in the previous fiscal.
The government earned tax worth BDT 690 million in the July-November period of the FY 2015-2016, which was BDT 928 million in the same period in the fiscal year 2014-2015, the DSE statistics showed.
“The earnings are related to turnover and shares by sponsor-directors. It’s usual that tax will fall if turnover declines,” said an analyst at a leading stockbroker.
DSE paid highest tax worth BDT 4.47 billion in the fiscal year 2010-11, when the market was bullish.
BBN/SK/AD