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The Financial Express

Tax receipts from DSE fall further in November

| Updated: December 10, 2021 10:39:23


Tax receipts from DSE fall further in November

The government's revenue collection from Dhaka Stock Exchange (DSE) fell further by 16 per cent in November compared to a month earlier as trading volume on the decline.

The government bagged revenue worth Tk 342 million in November as against Tk 407 million in October, according to available data with the DSE.

Of the total earnings in November, Tk 267 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission, while Tk 75 million came from share sales by sponsor-directors and placement holders, the DSE data shows.

Market insiders said the government earnings from the prime bourse fell further in November due to lower turnover, as earnings are related to turnover.

The daily turnover, the important gauge, plunged to Tk 12.12 billion on an average in November which was Tk 18.50 billion in October, according to the DSE data.

The prime index of the DSE also plunged by 298 points or 4.25 per cent in November compared to October this year.

A DSE official said month-on-month government earnings from the prime bourse fell marginally in November compared to a month earlier as trading volume on the decline.

However, he said, the overall tax collection remained on the right track as the government earnings from the DSE marked an increase in the July-November period.

The government's revenue earnings from the DSE marked a whopping 86 per cent rise in the first five months of the current fiscal year compared to the same period of the previous fiscal.

The government bagged revenue worth Tk 2,060 million in July-November of the Fiscal Year (FY) 2021-22, as against Tk 1,108 million in the same period of the previous fiscal year, registering a 86 per cent growth, the DSE data showed.

Of the total earnings in the five months, Tk 1,828 million came from the TREC holders' commission, while Tk 232 million came from the share sales by sponsor-directors and placement holders.

The government earned the amount on TREC 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.

Meanwhile, the government's revenue earnings from the DSE registered a 10 years high to Tk 2.66 billion in the FY 2020-21 as the DSE turnover recorded a decade high in a few trading sessions in the last fiscal year.

The country's capital market also posted the highest return of 54 per cent in a decade in the FY 2020-21.

However, in the FY 2019-20, the government's earnings 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 FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17, Tk 2.33 billion in FY 2017-18 and Tk 2.51 billion in FY 2018-2019 on TREC holders' commission and share sales by sponsor-directors and placement holders.

However, the DSE paid tax worth Tk 4.47 billion in the FY 2010-11, the highest in its history, when the market witnessed a wild trend before crashing.

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