The government revenue from Dhaka Stock Exchange dropped sharply 57.31 per cent or Tk 20.10 crore in May due to major decline in turnover on the bourse.
National Board of Revenue received just Tk 14.97 crore in taxes where Tk 12.25 crore as tax on turnover and Tk 2.72 crore as tax on sponsor-directors’ capital gain from share sales was also included.
In April, the government’s tax receipt from the bourse was Tk 35.07 crore including Tk 15.31 crore as taxes on turnover and Tk 19.76 crore as taxes on sponsor-directors’ profit from share sales.
Under the Income Tax Ordinance 1984, the government set to collect 0.05 per cent tax on turnover from brokerage houses that will be collected from investors on their daily transactions, and 5 per cent tax on capital gains made by sponsor-directors and placement-shareholders.
The consolidated turnover on the bourse declined 20 per cent or Tk 3,059.55 crore to Tk 12,258.22 crore in May from Tk 15,317.77 crore in April.
Like the previous month, the market remained sluggish and slow in May as investors remained on the sideline ahead of the budget for the fiscal year
2017-18, market operators said.
Investors took wait-and-see policy to avoid any unforeseen loses surrounding budget proposal that was placed on June 1, they said.
As a result, average daily turnover on DSE during the month of May decreased to Tk 583.72 crore compared with that of Tk 729.41 crore in April.
Tax collection by the government hit a record single-month high in November 2010 when it received Tk 47.71 crore, thanks to the market boom in 2009-2010.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks