The government’s tax collection from the Dhaka Stock Exchange in April declined to Tk 3.22 crore, the lowest since May 2009, due to continuous decline in the turnover of the bourse thanks to the prolonged political crisis across the country. This was 81.73 per cent less than the Tk 17.66 crore the government had received in April last year. The previous low since May 2009 was recorded in January when DSE members paid the government Tk 3.89 crore taxes against turnover.
The Tk 3.09 crore the government received in turnover taxes from the DSE members in May 2009 is the worst record in the recent past.
The average tax collection from the bourse in the current financial year has now declined to Tk 6.60 crore, which is 58.28 per cent less than last FY’s monthly average of Tk 15.82 crore.
The DSE collects the tax as brokerage commission at 0.05 per cent rate and then submits it to the NBR.
The tax collection by the government had hit a record high in November 2010 when they received Tk 47.71 crore after the market boom.
A DSE high official said, ‘The volume of the tax depends on the turnover of the stock exchange. As the turnover declined in recent months, so did the government’s tax collection from the bourse.’
In the last financial year, the National Board of Revenue had collected Tk 168.91 crore in turnover taxes from the DSE.
The National Board of Revenue got Tk 325.91 crore from the DSE in turnover tax in the FY 2010-2011, when the market witnessed record turnover, with a monthly average tax of Tk 27.15 crore.
The DSE price index rose to a record high at the end of 2010 with the bourse’s index DGEN skyrocketing to 8,918.51 points on December 5.
The DSE turnover reached its record high to Tk 3,249.57 crore on the day.
But a market crash pushed down the DGEN to 7,572.61 points on January 30, 2011 from 8,723.18 points on December 1, 2010.
The DSE turnover also declined due to the crash and stood at Tk 101.57 crore on January 21 this year, its five-year low. The previous lowest turnover of the bourse was Tk 81.54 crore on January 8, 2008.
The NBR has got a total of Tk 101.31 crore in the first 10 months of the present FY, including Tk 34.84 crore form the shares transactions of sponsors-directors and Tk 66.46 from turnover against taxes.
Besides, NBR also gets tax form sponsors-directors’ share transactions at 5 per cent rate.
The tax collection by the bourse from the sponsors-directors for share transactions in the last financial year was Tk 102.76 crore with a monthly average of Tk 8.56 crore, which was double compared with that of the current financial year.
The DSE collected Tk 121.37 crore in taxes on share and placement share transactions by sponsors-directors in the FY 2010-2011.
-With New Age input