Loading...
The Financial Express

Tax receipts from DSE jump 170pc in two months

| Updated: October 23, 2017 13:37:49


Tax receipts from DSE jump 170pc in two months

The government's revenue earnings from the major bourse marked a whopping 170 per cent rise in the first two months of the current fiscal year (FY) compared to the same period a year ago amid rising trading volume.

Analysts said on the back of rising turnover, the government earnings from the premier bourse rose accordingly, as earning is related to turnover.

The government bagged tax worth Tk 523 million in July-August, the first two months of the current FY 201-18 as against Tk 194 million in the same period in the previous fiscal year which was 170 per cent higher, according to statistics from the Dhaka Stock Exchange (DSE).

Of the total earnings in July and August, Tk 405 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission while Tk 118 million came from the 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 government exchequer.

On the other hand, the government earned Tk 194 million in the first two months (July-August) for the FY 2016-17, the DSE data shows.

The government earnings from the DSE marked a significant rise in July-August period of the current FY as turnover increased compared to the same period in the previous FY, said a DSE official.

"The earnings are related to turnover. It's usual that tax collection will rise if turnover increased," the DSE official told the FE.

The daily average turnover on the DSE stood at more than Tk 10 billion in recent months, which was around 4.50 billion in the previous year, the DSE data shows.

DSEX, the prime index of the DSE, which replaced the DGEN in four-and-a-half-year back, also added 350 points or 6.20 per cent in July and August as it opened at 5,656 points and reached at 6,006 points as on August 31.

Meanwhile, the government revenue collection from the DSE was 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 FY 2015-16 and Tk 2.47 billion in the just concluded fiscal year.

However, the highest revenue collection of Tk 4.47 billion came from the DSE in the FY 2010-11, when the market was wild before crash.

[email protected]

Share if you like

Filter By Topic