The government's revenue earnings from Dhaka Stock Exchange (DSE) jumped 128 per cent month on month in August on the back of rising trading volume.
Market operators said the revenue earnings from the prime bourse increased in step with growing turnover, as earnings are related to turnover.
The government bagged revenue worth Tk 329 million in August 2022, up by a whopping 128 per cent, from Tk 144 million in July 2022, according to the DSE data.
Of the total earnings in August, Tk 262 million came from the tax on the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission, while Tk 67 million came from the tax on share sales by sponsor-directors and placement holders, the DSE statistics show.
In July, Tk 128 million came from the TREC holders' commission while Tk 16 million came from the share sales by sponsor-directors and placement holders.
However, year-on-year earnings from the DSE dropped 40 per cent in the first two months of the current fiscal year compared to the same period of the previous fiscal.
The government collected revenue worth Tk 473 million in the first two months of this fiscal year -- July and August -- which was Tk 791 million in the same month of the previous fiscal year, the DSE data shows.
The DSE, on behalf of the government, collects tax on 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 then deposit 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.
The government earnings from the prime bourse rose in August compared to July as trading activities increased in August, said a DSE official.
"The earnings are related to turnover. It's usual that tax will rise if turnover increases," he said, adding that as the turnover almost doubled in August compared to July, so did the tax.
The daily turnover, an important gauge, jumped to Tk 12.75 billion on average in August 2022. The average daily turnover was Tk 6.46 billion in July 2022, according to the DSE data.
DSEX, the prime index of the DSE, also rose 323 points or 5.27 per cent in August to close the month at 6,457.
Meanwhile, the government's revenue earnings from the DSE hit an 11-year high to Tk 2.91 billion in the outgoing Fiscal Year (FY) 2021-2022.
The government's revenue earnings also registered a 10-year high to Tk 2.66 billion in the FY 2020-21 as turnover recorded a decade high in a few sessions in the last fiscal year.
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, Tk 2.51 billion in FY2018-2019 and Tk 1.04 billion in 2019-20 on TREC holders' commission and share sales by sponsor-directors & placement holders.
However, 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.
