SAM

Published:
2019-11-16 12:51:28 BdST

Govt earnings from DSE fall 28pc in Oct


FT ONLINE

The government's revenue earnings from the Dhaka bourse tumbled 28 percent month-on-month in October this year as trading volume was on the decline.

The turnover remains poor for months as an unusual fall of share prices continue to rattle the investors.

Market analysts said sluggish trading activities coupled with low share sales by sponsor-directors affected the government's earnings from the Dhaka Stock Exchange in October.

The government bagged revenue worth about Tk 112 million in October of 2019 which was Tk 157 million a month ago, according to data from the DSE.

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 percent and 5.0 percent respectively and deposits the amount to the government exchequer.

Of the total earnings, Tk 70 million came from the TREC holders' commission, popularly known as brokerage commission, while Tk 42 million from the share sales by sponsor-directors and placement holders, the DSE data shows.

The government earnings from the DSE also fell 29 percent in four months (July-October) of the current fiscal year compared to the same period of the previous fiscal.

The government bagged revenue worth about Tk 547 million in the July-October period of the current fiscal year which was Tk 771 million in the same period in the previous fiscal, the DSE data shows.

Falling turnover value hit the government earnings from the prime bourse, said a leading broker.

The daily average turnover for the July-September period of the current fiscal year came down to Tk 4.30 billion, which was Tk 7.40 billion in the same quarter in the previous fiscal.

Between July 1 and September 30 of the current fiscal year, DSEX, the prime index of the DSE, also eroded 474 points to stand at 4,947 on September 30, 2019.

The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17, Tk 2.33 billion in FY 2017-18 and Tk 2.51 billion in FY 2018-2019 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 FY 2010-11, the highest in its history, when the market witnessed a wild trend before crashing.

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