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The Financial Express

Tax receipts from DSE jump 113pc in nine months

| Updated: April 11, 2021 11:48:44


Tax receipts from DSE jump 113pc in nine months

The government's revenue earnings from the prime bourse marked a whopping 113 per cent rise in the first nine months of the current fiscal year (FY) compared to the same period of the previous fiscal.

Market operators 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 buoyant investors have given boost to the capital market during the period under review amid growing confidence riding on regulatory measures to bring disciple in the market, said a top broker.

The government bagged revenue worth Tk 2,274 million in nine months for July-March period of FY 2020-21 which was Tk 1,067 million in the same period of the previous FY, climbing by 113 per cent, 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 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.

The government earnings from the DSE also soared 76 per cent month-on-month in March this year to Tk 276 million which was Tk 157 million a month earlier, the DSE statistics showed.

A DSE official said the government earnings from the prime bourse jumped as trading volume increased substantially during the period under review which helped higher revenue collection.

"The earnings are related to turnover. It's usual that tax will rise if turnover increased," he said.

The daily average turnover on the DSE soared to more than Tk 9.0 billion on an average in July-March period of the current fiscal year.

DSEX, the prime index of the DSE, also surged 1,290 points or 32 per cent in the first nine months of the current fiscal year (July 1 to March 31), the DSE data showed.

However, the government's revenue earnings from the DSE hit more than 10 years low to Tk 1.04 billion in the last FY 2019-20 due to bearish market trend and suspension of trading activities 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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