The government’s revenue collection from Dhaka Stock Exchange dropped sharply by 36.72 per cent or Tk 8.24 crore in August due to a decline in turnover on the bourse.
The National Board of Revenue received just Tk 14.2 crore in taxes that included Tk 11.49 crore as tax on turnover and Tk 2.70 crore as tax on sponsor-directors’ capital gain from share sales.
In July, the government’s tax receipt from the bourse was Tk 22.44 crore including Tk 18.67 crore as taxes on turnover and Tk 3.77 crore as taxes on sponsor-directors’ profit from share sales.
Under the Income Tax Ordinance 1984, the government collects 0.05 per cent tax on turnover from brokerage houses (the brokerages collect the fund 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 by 24.77 per cent to Tk 11,495 crore in August from Tk 18,676.94 crore in July.
Investors remained on the sidelines for few days in August for celebrating Eid-ul Azha.
Eid-ul-Azha, one of the biggest religious festivals of Muslims, was celebrated across the country on August 22 and trading at the DSE remained closed from August 21 to August 25 for Eid holidays and weekly holidays.
The average daily turnover declined to Tk 638.62 crore in August with just 18 trading sessions compared with that of Tk 848.95 crore in July with 22 trading sessions.
However, the key index, DSEX, gained 298 points to settle at 5,600.64 points on August 30 due to a speculation that the market would advance before the prime minister’s visit to the commission, market operators said.
The prime minister is scheduled to attend the 25th anniversary ceremony of the BSEC on September 12.
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.
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