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The government revenue earnings from the Dhaka Stock Exchange (DSE) fell 19 per cent month-on-month in November this year on the back of falling trade volumes.
Market insiders said sluggish market trend coupled with low share sales by sponsor-directors and placement holders continued affecting the government revenue earnings from the prime bourse.
The government collected tax worth Tk 153 million in November against Tk 189 million in October 2018, falling more than 19 per cent, the DSE data shows.
The government earnings from the DSE also fell 28 per cent in five months of the current fiscal year (FY) compared to the same period of the previous fiscal.
The government bagged revenue worth Tk 924 million in July-November period of the FY 2018-19 against Tk 1,295 million in same period of the previous fiscal, the DSE data shows.
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 (trading right entitlement certificate) 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.
Of the total earnings in November, Tk 117 million came from the TREC holders' commission, popularly known as brokerage commission, while Tk 36 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.
In October, Tk 62 million came from the share sales by sponsor-directors and placement holders.
The daily average turnover in November stood at Tk 5.43 billion while average turnover was Tk 5.18 billion in October.
Between January 01 and November 30, 2018, DSEX, the prime index of the DSE, also eroded 963 points or 15.42 per cent.
Bearish market trend coupled with low the share sales by sponsor-directors and placement holders hit the government earnings from the DSE, said a DSE director.
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 and Tk 2.33 billion in FY 2017-18 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.