The government's revenue earnings from the premier bourse declined about 25 per cent in the first six months of the current fiscal year (FY), 2018-19, compared to the same period of the previous fiscal.
Lower turnover amid bearish trend in the capital market throughout the six months contributed to the fall in the revenue collection.
The revenue comes from share transactions and the capital gains on stock sales and transfer of shares by sponsor-directors.
The government collects revenue from the capital market under two sections -- 53 BBB and 53 M -- of the income tax ordinance.
In the first six months of the FY 2018-19, the Dhaka Stock Exchange (DSE) deposited over Tk 1.06 billion to the government's exchequer, down from Tk 1.42 billion collected during July-December, 2017-18.
Of the total amount of Tk 1.06 billion collected during July-December of FY 2018-19, over Tk 780.92 million came from brokers' commission charged on share transactions.
The government's tax collection from brokers' commission was over Tk 1.03 billion during July-December of FY 2017-18.
Due to lower transaction value, the revenue from share transactions declined 25 per cent over the same period of the previous year.
The government collects tax at a rate of 0.05 per cent on brokerage commission realised from the share transaction.
On the other hand, there is a 5.0 per cent tax on the capital gains from shares held by the sponsor-directors.
The government realised over Tk 287.75 million in tax from stock sales and transfer of shares by the sponsor-directors in the first six months of the FY 2018-19.
The revenue collection from stock sales and transfer of shares by sponsor-directors was over Tk 387.18 million during July-December of FY 2017-18.
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