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The government revenue collection from the Dhaka Stock Exchange (DSE) marked a 35 per cent decline month-on-month in February in lockstep with falling turnover.
The government bagged tax worth Tk 120 million in the second month of 2018, which was Tk 186 million in January, according to statistics available with the premier bourse.
Market operators said bearish market trend, lower shares sale by sponsor-directors coupled with reduced trading session affected the government revenue earnings from the premier bourse in February.
"The investors mostly followed "go-slow" strategy almost throughout the month of February amid persistent liquidity crisis which diluted the government earnings as earnings are related to turnover", said an analyst at a leading brokerage firm, seeking anonymity.
The daily average turnover on the DSE came down to Tk 4.04 billion in February, which was Tk 5.60 billion in January, 2018, the DSE data shows.
Stock indices also took a big hit in February as DSEX, the benchmark index of the DSE, shed 235 points or 3.89 per cent during the month.
There were only 19 trading sessions in February against 23 trading sessions in January.
However, the government earnings from the prime bourse marked a 13 per cent rise in eight months for July-February period of the current Fiscal Year (FY) compared to the same period of the previous fiscal year.
The government earned revenue worth Tk 1,733 million in eight months for July-February period of the FY 2017-18 as against Tk 1,529 million in the same period in the previous fiscal year, 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 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 DSE data shows that in the last five fiscal years, the revenue earnings of the government from the stock market declined due to lower turnover value following slide in shares prices.
The DSE paid tax worth about Tk 2.72 billion in the FY 2011-12, 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 the FY 2015-16 on TREC holders' commission and share sales by sponsor-directors and placement holders.
The DSE deposited Tk 2.46 billion in FY 2016-17 on TREC holders' commission and share sales by sponsor-directors and placement holders.
However, DSE paid tax worth about Tk 4.47 billion in the fiscal year 2010-11, the highest in its history, when the market saw wild trend before crash.