Tax receipts jump 43pc in nine months

The government revenue earnings from Dhaka Stock Exchange (DSE) jumped 43 per cent in nine months of the current fiscal year compared to the same period last fiscal, powered by rising trading volume.

The government bagged revenue worth Tk 3,256 million in nine months for July-March of the current fiscal year, as against Tk 2,274 million in the same period of the previous fiscal, showing a 43 percent growth, the DSE statistics shows.

Of the total earnings in July-March for the current fiscal, Tk 2,741 million came from the TREC holders' commission, popularly known as brokerage commission, while Tk 515 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.

In FY 2020-21 for July-March, Tk 1,658 million came from the TREC holders' commission while Tk 616 million came from the share sales by sponsor-directors and placement holders.

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 share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively.

The prime bourse has deposited the amount through the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer under Tax Zone-13 of the National Board of Revenue (NBR) using the e-TDS system.

The month-on-month earnings from the DSE also increased by 9.0 per cent to Tk 245 million in March, compared to Tk 225 million in February.

The daily turnover, the important gauge, stood at about Tk 14 billion on an average in nine months for July-March in the current fiscal year which was Tk 12 billion in the same period of the previous year, according to the DSE data.

The prime index of the prime bourse also rose 607 points or 9.87 per cent in nine months of the current fiscal year.

The government's revenue earnings from the DSE registered a 10 years high to Tk 2.66 billion in the FY 2020-21 as turnover recorded a decade high in few sessions in the last fiscal year.

However, in the FY2019-20, the government's earnings from the DSE plunged more than 10 years low to Tk 1.04 billion due to sluggish market turnover coupled with trading suspension for more than two months due to Covid-19 outbreak.

The DSE paid tax worth Tk 2.72 billion in FY2011-12, Tk 1.27 billion in FY2012-13, Tk 1.54 billion in FY2013-14, Tk 1.74 billion in FY2014-15, Tk 1.58 billion in FY2015-16, Tk 2.46 billion in FY2016-17, Tk 2.33 billion in FY2017-18 and Tk 2.51 billion in FY2018-2019 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 FY2010-11, the highest in its history, when the market witnessed a wild trend before crashing.