Government’s revenue collection from the Dhaka Stock Exchange rose by 60.54 per cent or Tk 53.73 crore in the first half (July-December) of the current financial year of 2017-18 compared with that in the corresponding period of the FY 2016-17 mainly due to a surge in turnover at the country’s premier bourse.
The National Board of Revenue in July-December of FY18 collected Tk 142.48 crore in tax including tax on turnover and tax on sponsor-directors’ share sales against Tk 88.75 crore in the first half of FY17, DSE data showed.
The government in the period of FY18 got Tk 103.77 crore in tax on turnover, while it was Tk 38.72 crore in the same period of FY17.
The NBR in FY17 received Tk 282 crore in tax from the DSE against its receipt of Tk 180.35 crore in FY16.
Under the Income Tax Ordinance 1984, the DSE collects 0.05 per cent tax on turnover, while sponsor-directors and placement holders are bound to pay 5 per cent tax on their capital gain on shares sales.
The bourse on behalf of the government collects tax as per the revenue board-set guidelines and submits it to the respective department of the NBR, said DSE officials.
The amount of the government’s tax collection from the bourse depends on its turnover and sponsor-directors’ capital gain, they said.
They said as the turnover increased in the first half of FY18, tax collection from the DSE rose.
The total turnover at the bourse increased by 42 per cent to stand at Tk 1,03,820.34 crore in July-December of FY18 from Tk 69,398.79 crore in the same period of FY17.
The average turnover stood at Tk 828.50 crore in July-December period of FY18 (with 125 trading sessions) compared with that of Tk 580 crore in the same period of FY17 (with 116 trading sessions).
Tax collection by the government had hit a record single-month high in November 2010 when it received Tk 47.71 crore, thanks to a market boom.
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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