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The government’s tax revenue earnings from the Dhaka Stock Exchange decreased by 17.22 per cent or Tk 3.42 crore in February, compared with that of January of the current financial year, as turnover decreased significantly amid confidence crisis among investors.
In February of the current financial year, tax revenue from the DSE was Tk 13.80 crore against Tk 17.22 crore in January, according to DSE data.
In February, the government’s tax revenue earning from member of stock exchange or trading right entitlement certificate holders’ commission decreased by 25.29 per cent to Tk 8.8 crore against Tk 11.78 crore in January.
Tax revenue from share sales by sponsor-directors and placement holders also dropped by 9.84 per cent to Tk 5.10 crore in February from Tk 5.26 crore in January.
The government’s revenue earnings from the DSE year-on-year dropped by 35 per cent or Tk 107 crore in July-February period of the financial year 2022-23.
The National Board of Revenue received tax worth Tk 197 crore in July-February of FY23 against Tk 304 crore in the same period of FY22, according to DSE data.
Of the total tax revenue in July-February of FY23, about Tk 140 crore came from tax on TREC holders in commission, popularly known as brokerage commission, and Tk 56.9 crore from tax on share sales by sponsor-directors and placement holders, the data showed.
The market continued to struggle in the past eight months and low share sales by sponsor-directors made the situation worse as a result of which daily average turnover went down 40 per cent to Tk 745 crore, market operators said.
The benchmark index of the DSE plunged by 160 points or 2.50 per cent over the eight months through February of the current financial year, they said.
The market movement mostly depended on stocks of selective companies as most other securities remained stuck at floor prices due to less interest of investors.
As the tax revenue is related to the market turnover, the lower turnover has led to the decline in the government’s revenue earnings, they added.
The DSE, on behalf of the government, collects tax on TREC holders’ commission and share 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’s revenue earnings in FY 2020-21 from the DSE hit a 10-year high of Tk 266 crore, as the DSE turnover recorded a decade-high in a few trading sessions in the financial year.
(NA)
