The government's revenue earnings from the prime bourse marked a whopping 112 per cent rise in the first five months of the current fiscal year (FY) compared to the same period a year ago amid rising trading volume.
Market insiders said on the back of rising trading volume, the government earnings from the Dhaka Stock Exchange (DSE) rose accordingly, as earning is related to turnover.
The government bagged tax worth Tk 1,295 million in July-November period of FY 2017-18 as against Tk 611 million in the same period in the previous fiscal year which was 112 per cent higher, according to statistics from the DSE.
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 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.
A DSE official said the government earnings from the premier bourse jumped as trading volume increased substantially in the July-November period of the FY 2017-18, which helped higher tax collection.
The daily average turnover during July-November period rose to nearly Tk 10 billion while daily average turnover was about Tk 6.68 billion in the same period in the previous fiscal year, according to statistics from the DSE.
"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 July-November period of the current fiscal year, so did tax".
Between July 1 and November 30 of the current fiscal year, DSEX, the prime index of the DSE, also added more than 652 points or 11.53 per cent to reach at 6,306 on November 30 which was 5,654 on July 1.
However, the government earnings from the DSE fell slightly by 0.86 per cent month-on-month in November to Tk 231 million compared to October this year.
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 saw wild trend before crash.