The government's revenue earnings from the Dhaka Stock Exchange (DSE) slumped by 43 per cent month-on-month in February as turnover and share sales by sponsor-directors fell drastically.
Market insiders said sluggish turnover and lower share sales by sponsor-directors mainly hit the government's revenue earnings from the prime bourse in February.
The government bagged revenue worth Tk 225 million in February which was Tk 397 million in January, 2022, according to data from the DSE.
Of the total earnings in February, Tk 221 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission, while only Tk 4.0 million from the share sales by sponsor-directors.
In January, Tk 312 million came from the TREC holders' commission while Tk 85 million from the share sales by sponsor-directors and placement holders, the DSE data shows.
However, the government has earned Tk 3,011 million in the first eight months (July-February) of the current fiscal year, as against Tk 1,998 million in the same period of the previous fiscal, showing a 51 per cent growth, according to DSE data.
Of the total earnings, Tk 2,555 million came from the TREC holders' commission while Tk 456 million came from the share sales by sponsor-directors and placement holders during the period under review of the current fiscal year.
In FY 2020-21 for July-February, Tk 1,513 million came from the TREC holders' commission while Tk 485 million came from the share sales by sponsor-directors and placement holders.
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.
The prime bourse has deposited the amount through the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer under Tax Zone-13 of the National Board of Revenue (NBR) using the e-TDS system.
A DSE official said despite revenue earnings fell in February, the overall earnings from the prime bourse remained satisfactory as the government earned over Tk 3.01 billion in the first eight months of the current fiscal year.
"The earnings are related to turnover. It's usual that tax will fall if turnover decreases," he said.
The daily average turnover on the DSE stood at Tk 11.62 billion in February which was Tk 14.20 billion in January, 2022.
DSEX, the prime index of the DSE, also lost 187 points or 2.70 per cent in February, the DSE data showed.
Meanwhile, the government's revenue earnings from the DSE registered 10 years high to Tk 2.66 billion in the FY 2020-21 as the DSE turnover recorded a decade high in few sessions in the last fiscal year.
However, in the FY2019-20, the government's earnings from the DSE plunged more than 10 years low to Tk 1.04 billion due to sluggish market turnover coupled with trading suspension for more than two months due to Covid-19 outbreak.
The DSE paid tax worth Tk 2.72 billion in FY2011-12, Tk 1.27 billion in FY2012-13, Tk 1.54 billion in FY2013-14, Tk 1.74 billion in FY2014-15, Tk 1.58 billion in FY2015-16, Tk 2.46 billion in FY2016-17, Tk 2.33 billion in FY2017-18 and Tk 2.51 billion in FY2018-2019 on TREC holders' commission and share sales by sponsor-directors and placement holders.
The DSE paid tax worth Tk 4.47 billion in the FY2010-11, the highest in its history, when the market witnessed a wild trend before crashing.
