Government’s tax collection from the Dhaka Stock Exchange rose by 208 per cent to Tk 20.14 crore in August compared with that in the previous month, thanks to the increased turnover at the bourse, DSE data released on Wednesday showed.
In August, the DSE paid Tk 12.65 crore as tax on turnover and Tk 7.48 crore as tax on sponsor-directors capital gain from share sales.
The country’s prime bourse in July, the first month of the current financial year 2014-15, paid Tk 6.52-crore as tax to the government including Tk 2.40 crore as tax on turnover and Tk 2.05 crore as tax on sponsor-directors’ share sales.
Government’s tax collection from the bourse was Tk 12.08 crore in June which declined to Tk 4.46 crore in July.
DSE under the Section 53 BBB of Income Tax Ordinance 1984 collects 0.05 per cent tax on turnover, while sponsor-directors and placement holders are bound to pay 5 per cent tax on their capital gain on share sales as per the Section 53M of the Income Tax Ordinance 1984.
If the turnover and sponsor-directors’ share sales at the bourse increases, tax collection from the sector rise automatically, DSE officials said.
The daily average turnover at the bourse was Tk 633 crore in August, a 20-trading-session month, with the total turnover standing at Tk 12,658.90 crore during the month.
On the other hand, the daily average turnover at DSE was Tk 242 crore in July with a total turnover of Tk 4,115.67 crore throughout the month. July was a 17-trading-session month.
The bourse in the last financial year 2013-14 paid Tk 153.84 crore in tax including tax on turnover and on sponsor-directors’ share sales against Tk 127.29 crore it had paid in the previous FY.
The government in the FY14 got Tk 112.53 crore in tax on turnover, while it was Tk 85.70 crore in the previous FY.
The bourse in the FY14 collected Tk 41.31 crore in tax on sponsor-directors’ share transactions, while it was Tk 41.58 crore in the FY13.
The National Board of Revenue in the FY12 got Tk 168.91 crore in tax on turnover against Tk 102.76 crore in tax on sponsor-directors’ share sales.
The bourse after its inception gave the highest tax on turnover of Tk 325.91 crore in the FY11 when the market had witnessed the bubble burst.
Tax collection by the government had hit a record single-month high in November 2010 when it received Tk 47.71 crore, thanks to the market boom.
-With New Age input
