Government’s tax collection from the Dhaka Stock Exchange increased by 45.98 per cent or Tk 86 crore in last fiscal year compared with that in the previous fiscal year mainly due to an increased participation of investors on the trading floor.
The National Board of Revenue in the fiscal year 2016-17 received Tk 282 crore from the DSE against its receipt of Tk 180.35 crore in FY 2015-16.
As per the Income Tax Ordinance 1984, the DSE and the Chittagong Stock Exchange collect 0.05 per cent tax on turnover and 5 per cent tax on capital gains from share sales by sponsor-directors and placement holders.
In FY17, the revenue board received Tk 180.29 crore against source tax from brokerage companies while Tk 66.23 crore from sales of securities by placement share-holders and Tk 34.68 crore from dividend income of share-holders.
The government’s tax collection from the capital market mainly depends on the turnover and taxes on sponsor-directors’
capital gain from share sales, DSE officials said.
Total turnover at the bourse increased by 68.33 per cent to Tk 1,80,522.20 crore in FY17 from Tk 1,07,246.06 crore in the fiscal year 2015-16.
The daily average turnover increased to Tk 755 crore compared with that of Tk 734 crore in the previous fiscal year.
Government’s tax collection from the DSE hit its all-time high in the fiscal year 2010-11 to Tk 625.45 crore amid a market bubble that later bust, DSE officials said.
The revenue collection from the sector, however, declined gradually in the following years due to a prolonged market depression after the market crash at the end of 2010.
The NBR collected Tk 424.72 crore in tax from the DSE in FY12 and Tk 234.31 crore in FY13. The revenue board, however, received Tk 259.42 crore in tax in FY14 from the bourse.
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