The government revenue earnings from the Dhaka bourse marked 25 per cent rise in July-January period of the current fiscal year (FY) compared to the same period in the previous fiscal, as trading volume was on the rise.
Market operators said the government earnings from the premier bourse increased as trading volume rose especially in July-November period, which helped higher tax collection, as earnings is related to trading volume.
The government bagged tax worth Tk 1,613 million in seven months for July-January period of FY 2017-18 as against Tk 1,293 million in the same period in the previous FY, registering an increase of 25 per cent, according to statistics from the DSE.
The government earnings from the DSE also rose 41 per cent month-on-month in January to Tk 186 million.
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.
Market insiders 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 daily average turnover during the period was nearly Tk 7.50 billion while daily average turnover was about Tk 5.80 billion in the same period in the previous fiscal year, according to statistics from the DSE.
"The earnings are related to turnover. It's usual that tax will rise if turnover increases," said an analyst at a leading brokerage firm, adding "As the turnover marked an increase in July-January period of the current fiscal year, so did tax".
Between July 1 and January 31 of the current fiscal year, DSEX, the prime index of the DSE, also added more than 384 points or 6.79 per cent to the DSEX.
DSE paid tax worth 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 and 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 Tk 4.47 billion in the fiscal year 2010-11, the highest in its history, when the market saw wild trend before crash.