The government’s tax collection from the Dhaka Stock Exchange in May plunged by 75.65 per cent compared with that in the previous month due to a significant fall in sponsor-directors’ capital gain.
The National Board of Revenue in May received Tk 10.1 crore as tax from the DSE. Of the amount, Tk 7.71 crore came as tax on turnover and Tk 2.39 crore as tax on sponsor-directors’ capital gain from share sales.
In April, the government’s tax receipt from the bourse was Tk 43.26 crore that included Tk 6.98 crore as turnover tax and Tk 36.28 crore as tax on sponsor-directors’ capital gain from share sales.
Capital gain of sponsor-directors’ share sales declined significantly as the market was mostly dull in the month and the directors took cautious stance after heavy share sales in the previous month, market operators said.
Turnover on the bourse remained below Tk 400 crore in May as many investors were worried about the market trend.
The average daily turnover on the DSE increased by 5.15 per cent to Tk 367 crore in May compared with that of Tk 349.1 crore in April (20 trading sessions each month) as some investors came forward to make some investment at the end of May.
The key index, DSEX, gained 175 points to finish at 5,377.74 points on May 30 amid bargain hunting by some optimistic investors at the end of the month.
Market operators said though the core index gained, the overall market outlook was not good enough to attract most of the investors to the market.
The market has been struggling for four months due mainly to volatility in the country’s financial sector.
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 daily transactions and 5 per cent tax on capital gains made by sponsor-directors and placement-shareholders.
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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