The government’s tax collection from the Dhaka Stock Exchange increased by 3.29 per cent in February compared with the previous month due to increased share sell-offs by sponsor-directors and placement holders. The country’s prime bourse paid Tk 14.37 crore in tax in February which was Tk 13.92 crore in the previous month. Of the tax amount, the DSE paid Tk 10.96 crore in tax on turnover and Tk 3.41 crore from sponsor-directors’ and placement holders’ capital gain.
On the other hand, the government in January got Tk 12.52 crore over turnover while the bourse paid Tk 1.39 crore in tax on sponsor-directors’ and placement holders’ capital gain.
The DSE’s tax payment to the government in February was highest after Tk 14.42 crore in September last year.
The bourse in December collected Tk 9.94 crore in tax on turnover and Tk 2.72 crore on sponsor-directors’ share transactions.
The DSE collects the tax as brokerage commission at 0.05 per cent rate and then submits it to the National Board of Revenue, while it collects 5 per cent tax from the sponsor-directors’ capital gain on share sales.
The government’s tax collection from the bourse depends on its turnover and sponsors-directors’ capital gain, said DSE officials.
They also said despite declined in turnover of the bourse in February, the tax collection form the bourse increased as gain tax over sponsor-directors’ share sales doubled in February.
The sponsor-directors and placement holders increased their share sales as the DSEX increased 487 points in January which had prompted them to sell off shares to make profit.
The turnover of the DSE hit a two-year high of Tk 1,294.61 crore on July 9 2013, which was the highest after Tk 1,341.26 crore recorded on July 31, 2011.
The government’s tax collection from the DSE had declined to Tk 3.22 crore in April last year, which was the lowest since May 2009 when the government had collected Tk 3.09 crore.
In the last financial year the NBR had collected Tk 85.70 crore in tax on turnover from the bourse on a monthly average of Tk 7.09 crore.
Tax collection by the government had hit a record high in November 2010 when it received Tk 47.71 crore, thanks to the market boom.
The NBR had collected Tk 168.91 crore in tax on turnover from the DSE in the FY12.
The NBR got Tk 325.91 crore from the DSE in FY11, when the market witnessed record turnover, with a monthly average of Tk 27.15 crore.
-With New Age input
