The government's revenue earnings from the Dhaka bourse marked a 112 per cent rise month-on-month in April, 2018 with the increased trade volume.
Market operators said the government earnings from the Dhaka bourse rose substantially during the month compared to March on the back of increased trading volume coupled with significant share transactions by sponsor-directors and placement holders.
The government bagged tax worth about Tk 220 million in April as against Tk 104 million in March 2018, registering an increase of nearly 112 per cent, according to statistics from the Dhaka Stock Exchange (DSE).
The government earned the amount on TREC (trading right entitlement certificate) holders' commission and share sales by sponsor-directors and placement holders.
Of the total earnings in April, Tk 115 million came from TREC holders' commission and Tk 104 million came from share sales by sponsor-directors and placement holders, the DSE data shows.
The DSE, on behalf of the government, collects tax as TREC holders' commission and sponsor-directors and placement holders' shares sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the national exchequer.
However, the government earnings from the DSE fell 6.16 per cent in 10 months period for July, 2017 to April, 2018 of the current fiscal year amid sluggish trading activities during the period.
A DSE official said the government earnings from the premier bourse soared in April as trading volume and sponsor-directors share sales increased substantially, which helped higher tax collection.
The daily turnover averaged at Tk 5.47 billion in April, registering an increase of 63 per cent from March. In March, the daily average turnover was Tk 3.35 billion, the DSE data shows.
"The earnings are related to turnover. It's usual that tax will rise if turnover increases," said an analyst at a leading brokerage firm, adding: "As the turnover marked an increase in April, so did the tax."
DSEX, the prime index of the DSE, also added more than 142 points or 2.53 per cent during the month of April.
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, Tk 1.58 billion in the FY 2015-16 and Tk 2.46 billion in FY 2016-17 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, the highest in its history, when the market witnessed a wild trend before crashing.
