The government revenue earnings from Dhaka Stock Exchange (DSE) jumped 41 per cent in 10 months of the current fiscal year compared to the same period last fiscal backed by rising trading volume.
Market analysts said in line with the rising turnover, the government earnings from the prime bourse rose accordingly, as earning is related to turnover.
The government bagged revenue worth Tk 3,474 million in 10 months for July-April of the Fiscal Year (FY) 2021-22, as against Tk 2,468 million in the same period of the previous fiscal, the DSE statistics shows.
Of the total earnings in July-April for the current fiscal, Tk 2,865 million came from the TREC holders' commission, popularly known as brokerage commission, while Tk 609 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.
In FY 2020-21 for July-April, Tk 1,801 million came from the TREC holders' commission while Tk 667 million came from the share sales by sponsor-directors and placement holders.
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.
The prime bourse has deposited the amount through the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer under Tax Zone-13 of the National Board of Revenue (NBR) using the e-TDS system.
However, month-on-month earnings from the DSE fell marginally by 11 per cent to Tk 218 million in April, down from Tk 245 million in March, 2022.
The government earnings from the prime bourse in 10 months rose as trading activities increased during the period under review, said a DSE official.
"The earnings are related to turnover. It's usual that tax will rise if turnover increases," he said.
He noted that as the turnover marked an increase in July-April period in the current fiscal year compared to the same period of the previous year, so did the tax.
The daily turnover, the important gauge, stood at about Tk 14.50 billion on an average in 10 months of the current fiscal year which was Tk 12.45 billion in the same period of the previous fiscal, according to the DSE data.
The prime index of the DSE also rose 505 points or 8.21 per cent in 10 months of the current fiscal year.
The government's revenue earnings from the DSE registered a 10 years high to Tk 2.66 billion in the FY 2020-21 as turnover recorded a decade high in few sessions in the last fiscal year.
However, in the FY2019-20, the government's earnings from the DSE plunged to Tk 1.04 billion due to sluggish market turnover coupled with trading suspension for more than two months due to Covid-19 outbreak.
The DSE paid tax worth Tk 2.72 billion in FY2011-12, Tk 1.27 billion in FY2012-13, Tk 1.54 billion in FY2013-14, Tk 1.74 billion in FY2014-15, Tk 1.58 billion in FY2015-16, Tk 2.46 billion in FY2016-17, Tk 2.33 billion in FY2017-18 and Tk 2.51 billion in FY2018-2019 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.