Tax receipts from DSE up 105pc in July

The government's revenue earnings from the Dhaka Stock Exchange (DSE) marked 105 per cent rise month-on-month in July on the back of rising trading volume.

Analysts said on the back of rising turnover value, the government earnings from the premier bourse rose accordingly, as earning is related to turnover.

The government bagged tax worth Tk 252 million in July, the first month of the current Fiscal Year (FY) 201-18 as against Tk 123 million in June 2017, registering an increase of 105 per cent over the previous month, according to statistics from the DSE.

Of the total earnings in July, Tk 209 million came from the TREC (trading right entitlement certificate) holders' commission, popularly known as brokerage commission while Tk 43 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.

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.

The government earnings from DSE marked a rise as turnover increased in July compared to the month of June, said a DSE official.

"The earnings are related to turnover. It's usual that tax collection will rise if turnover increased," the DSE official told the FE.

The daily average turnover on the DSE stood at Tk 9.51 billion in July, the first month of the current fiscal year, which was Tk 5.64 billion in June 2017, the DSE data shows.

DSEX, the prime index of the DSE, which replaced the DGEN in four-and-a-half-year back, also added 205 points or 3.62 per cent in July as it opened at 5,656 points and closed at 5,861 points.

The government revenue collection from the DSE was 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 FY 2015-16 and Tk 2.47 billion in the just concluded fiscal year.

However, the highest revenue collection of Tk 4.47 billion came from the DSE in the FY 2010-11, when the market was bullish before crash.

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