The government’s tax collection from the Dhaka Stock Exchange dropped by 25 per cent in March compared with the previous month due to fall in turnover followed by institutional investors’ less participation on the trading floor. In March, the country’s prime bourse paid Tk 10.74 crore in tax which was Tk 14.37 crore in the previous month, DSE data showed.As per the DSE data, the bourse in March paid Tk 7.30 crore in tax on turnover, while it paid Tk 3.44 crore in tax on sponsor-directors’ and placement holders’ capital gain.
Of the Tk 14.37 crore tax in February, the government got 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 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.
Institutional investors declined their participation on the trading floor following a Bangladesh Bank move which asked daily investments report from the banks on weekly basis, market operators said.
The key index of Dhaka Stock Exchange, DSEX, declined by 258 points in March which was another reason behind the retail investors’ shaky participation on the trading floor, they said.
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.
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.
-With New Age input
