There has been a 41% jump in revenue earnings from Dhaka Stock Exchange (DSE) in 10 months (July-April) of the current fiscal year 2021-22, compared to the same period last fiscal backed by rising trading volume.
Market analysts said in line with rising turnover, government earnings from the prime bourse rose accordingly, as earnings are related to turnover.
The government bagged revenue worth Tk347.4 crore in 10 months for FY22, as against Tk246.8 crore in the same period of the previous fiscal, DSE statistics showed.
Of the total earnings in July-April for the current fiscal, Tk286.5 crore came from the TREC holders' commission, popularly known as brokerage commission, while Tk60.9 crore came from the share sales by sponsor-directors and placement holders, the DSE data also showed.
In FY21 for July-April, Tk180.1 crore came from the TREC holders' commission while Tk66.7 crore came from the share sales by sponsor-directors and placement holders.
The government earned the amount on TREC (trading right entitlement certificate) holders' commission and share sales by sponsor-directors and placement holders.
The DSE, on behalf of the government, collects tax as TREC holders' commission and share sales by sponsor-directors and placement holders at the rate of 0.05% and 5% respectively.
The prime bourse has deposited the amount through the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer under Tax Zone-13 of the National Board of Revenue (NBR) using the e-TDS system.
However, month-on-month earnings from the DSE fell marginally by 11% to Tk21.8 crore in April, down from Tk24.5 crore in March, 2022.
The government earnings from the prime bourse in 10 months rose as trading activities increased during the period under review, said a DSE official.
The earnings are related to turnover. It is usual that tax will rise if turnover increases, he also said.
He noted that as the turnover marked an increase in July-April period in the current fiscal year compared to the same period of the previous year, so did the tax.
The daily turnover, the important gauge, stood at about Tk1,450 crore on an average in 10 months of the current fiscal year which was Tk1,245 crore in the same period of the previous fiscal, according to the DSE data.
The prime index of the DSE also rose 505 points or 8.21% in 10 months of the current fiscal year.
The government's revenue earnings from the DSE registered a 10 years high to Tk266 crore in FY21 as turnover recorded a decade high in a few sessions in the last fiscal year.
In FY20, the government's earnings from the DSE had plunged to Tk104 crore due to sluggish market turnover coupled with trading suspension for more than two months due to Covid-19 outbreak.
The DSE paid tax worth Tk272 crore in FY12, Tk127 crore in FY13, Tk154 crore in FY14, Tk174 crore in FY15, Tk158 crore in FY16, Tk246 crore in FY17, Tk233 crore in FY18 and Tk251 crore in FY2019 on TREC holders' commission and share sales by sponsor-directors and placement holders.
However, the DSE paid tax worth Tk447 crore in FY11, the highest in its history, when the market witnessed a wild trend before crashing.