The government’s tax collection from the Dhaka Stock Exchange edged down to Tk 23 crore in November from Tk 23.27 crore in the previous month as the market remained dull for the second consecutive month.
Although the government’s tax collection from daily transaction of investors increased by Tk 3 crore in November, tax collection from capital gains made by sponsor-directors declined by Tk 3 crore in November.
The National Board of Revenue received Tk 18.4 crore in tax on turnover and Tk 4.6 crore in tax on sponsor-directors’ capital gains from share sales in November.
In October, the NBR received Tk 15.69 crore as turnover tax and Tk 7.5 crore as tax on sponsor-directors’ capital gains from share sales.
The tax collection in November was the lowest after June this year when the NBR collected only Tk 12 crore from the bourse.
After June, the tax collection from the bourse doubled in July and increased further in the next two months as the market was bullish during the period.
But, during the last two months, the tax collection declined as the market was going slow.
The government’s tax collection from the bourse depends on the turnover on the stock exchange and sponsor-directors’ capital gains.
The consolidated turnover on the bourse in 22 trading sessions increased by 17.35 per cent to Tk 18,421.79 crore in November from Tk 15,697.42 crore in October.
The average daily turnover on the DSE increased in the month to Tk 837.35 crore compared with that of Tk 713.51 crore in October.
Under the Income Tax Ordinance 1984, the DSE collects 0.05 per cent tax on turnover from brokerage houses, which collect the tax from investors on their (investors) daily transactions, and 5 per cent tax on capital gains made by sponsor-directors and placement-shareholders.
The bourse on behalf of the government collects tax as per the revenue board-set guidelines and submits the tax to the NBR department concerned.
Single-month tax collection by the government from the DSE hit a record high in November 2010 when it received Tk 47.71 crore, thanks to the market boom in 2009-2010.
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