Govt’s tax collection from DSE hits 3-month high in January

The government’s tax collection from Dhaka Stock Exchange, the country’s prime bourse, hit three months high to Tk 15.53 crore in January this year due to improved market situation as well as turnover.
The revenue collection from the bourse was Tk 17.42 crore in October, 2015 including Tk 8.37 crore taxes on turnover and Tk 10.09 crore in taxes on sponsor directors’ share sales.
On the other hand, the revenue collection was 40.41 per cent higher in January compared with that of Tk 11.06 crore in December, 2015. The government in November collected Tk 13.61 crore from the bourse.
Under the Income Tax Ordinance 1984, the DSE collects 0.05 per cent tax on turnover from brokerage houses and 5 per cent tax on sponsor-directors’ and placement holders’ capital gains on share sales.
The bourse on behalf of the government collects tax as per the revenue board set guideline and submits to the respective department of the NBR, DSE officials said.
The government’s tax collection from the bourse depends on its turnover and sponsor-directors’ capital gains, they said.
Investors’ participation on the trading floor increased after the Bangladesh Bank on January 20 last year relaxed banks’ capital market exposure calculation process, officials said.
According to DSE data, DSE deposited Tk 11.34 crore in taxes on turnover and Tk 4.19 crore in taxes on sponsor-directors’ and placement holders’ capital gains on share sales.
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.
Monthly turnover at the bourse increased by Tk 2,188.44 crore to Tk 11,349.62 crore in January compared with that of Tk 9,161.18 crore in the previous month.
In 2015, NBR collected Tk 150.70 crore in tax including tax on turnover and on sponsor-directors’ share sales against Tk 178.50 crore in the previous year.
The government during the period got Tk 103 crore in tax on turnover against that of Tk 118.80 crore in the previous year.
Besides, the bourse in 2015 paid Tk 47.70 crore in tax to revenue board on sponsor-directors’ share sales against Tk 59.70 crore in the previous year.
In 2015, turnover at the bourse declined to Tk 1,03,073.70 crore with a daily average turnover worth Tk 422.40 crore which was Tk 1,18,852.20 crore and 499.40 crore respectively.
The bourse after its inception gave the highest tax on turnover amounting to Tk 325.91 crore in the FY11 when the market had witnessed a bubble-burst.