Govt's earnings from DSE fall 5.28pc in FY18

FE Report | Published: July 06, 2018 11:17:34 | Updated: July 08, 2018 11:18:48


The government's revenue earnings from the Dhaka bourse fell 5.28 per cent in the just concluded fiscal year (FY) compared to the previous fiscal.

Market insiders said the sluggish trading activities affected the government's revenue earnings from the Dhaka Stock Exchange (DSE).

The government bagged revenues of Tk 2.33 billion in FY 2017-18, which was Tk 2.46 billion in the previous FY, registering a decline of 5.28 per cent, the DSE data shows.

Of the total earnings in FY 2017-18, Tk 1.59 billion came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission.

And Tk 741 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.

The DSE, on behalf of the government, collects the tax as TREC holders' commission at a rate of 0.05 per cent and from sponsor-directors' and placement holders' shares sales at a rate of 5.0 per cent. The DSE then deposits the amount to the public exchequer.

"Declining the turnover value hit the government earnings in the just concluded fiscal year," said a director of the premier bourse.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), shed 251 points or 4.44 per cent in the just concluded fiscal year.

The daily average turnover, another important gauge, also came down to Tk 6.46 billion in FY 2017-18, down 14.43 per cent over the previous FY.

"The earnings are related to turnover. It's usual that tax will fall if the turnover declines," said an analyst at a leading brokerage firm.

"As the turnover marked a decline in the last FY compared to the previous FY, so did the tax," he added.

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 and Tk 2.46 billion in FY 2016-17 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 fiscal year 2010-11, the highest in its history, when the market witnessed a wild trend before crashing.

babulfexpress@gmail.com

Share if you like