The government's revenue earnings from the Dhaka bourse marked a 61 per cent rise year-on-year in the first six months of the current fiscal year (FY) on the back of rising trade volumes.
Market insiders said on the back of rising turnover value, the government earnings from the Dhaka Stock Exchange (DSE) rose accordingly, as earning is related to turnover.
The government bagged tax worth Tk 1,427 million in July-December period of FY 2017-18 as against Tk 886 million in the same period in the previous FY, registering an increase of 61 per cent, according to statistics from the prime bourse.
However, the government earnings from the DSE fell 43 per cent month-on-month in December 2017 to Tk 132 million as market turnover fell sharply in the last month of 2017. The daily average turnover slumped to Tk 4.86 billion in December which was Tk 8.37 billion in November 2017.
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 government earnings from the premier bourse jumped in first half of the current FY as trading volume increased substantially in the July-December period, which helped higher tax collection, said a DSE executive.
The daily average turnover during July-December period rose to Tk 8.27 billion in FY 2017-18 while daily average turnover was Tk 5.78 billion in the corresponding period of the previous FY, the DSE data shows.
"The earnings are related to turnover. It is 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-December period of the current fiscal year, so did tax".
Between July 1 and December 28 of the current fiscal year, DSEX, the prime index of the DSE, also added more than 588 points or 10.40 per cent to close at 6,244 on December 28, the last trading session of 2017.
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.