Tax receipts from DSE jump 83pc in July-Apr

Dhaka,  Mon,  21 August 2017
Published : 13 May 2017, 21:24:41
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Tax receipts from DSE jump 83pc in July-Apr

FE Report

The government revenue earnings from the Dhaka bourse jumped 83 per cent in 10 months for July-April period of the current fiscal year (FY) compared to the same period of the previous FY as trading volume was on the rise.

Market insiders said the government earnings from the Dhaka Stock Exchange (DSE) rose as trading volume increased substantially in January-March period of 2017, which helped higher tax collection, as earnings is related to trading volume.

The government bagged tax worth about Tk 2,393 million in July-April period of the current FY, against Tk 1,304 million in the same period of the previous FY, according to statistics available with 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 tax as TREC holders' commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.

The month-on-month government earnings from the DSE also marked a 12 per cent rise in April as total revenue collection was Tk 351 million in April which was Tk 313 million in March, 2017, the DSE data shows.

Tax receipts from DSE jump 83pc in July-Apr

Between July 1, 2016 and April 30, 2017 (10 months), DSEX, the prime index of the DSE, added nearly 970 points or 21.50 per cent.

"The turnover also marked significant rise, especially for January-March period of the 2017 compared to same period of the previous year, which contributed overall higher revenue collection," said an analyst at a leading brokerage firm.

He noted that a consistent rally with higher transaction, in January-March period, helped net higher revenue collection from the premier bourse.

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 Tk 2.72 billion in the FY 2011-12, Tk 1.27 billion in the FY 2012-13, Tk 1.54 billion in the FY 2013-14, Tk 1.74 billion in the FY 2014-15 and Tk 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 Tk 4.47 billion in the fiscal year 2010-11, highest in its history, when the market saw a cosmic rally.

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