Published at: The Financial Express, April 05, 2019
The government revenue earnings from the Dhaka Stock Exchange (DSE) inched up 0.86 per cent month-on-month in March despite trading activities fell sharply.
Market analysts said higher shares sale by sponsor-directors during the month kept the government earnings from the premier bourse afloat.
The daily average turnover on the DSE also came down to Tk 4.84 billion in March, which was Tk 7.65 billion in February, 2019, the DSE data shows.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), fell 220 points or 3.85 per cent in March to close the month at 5,491 points.
The government collected revenue worth Tk 234 million in March which was Tk 232 million in February, 2019, advancing 0.86 per cent month-on-month, according to statistics from the DSE.
Of the total earnings in March, Tk 140 million came from share sales by sponsor-directors and placement holders. It was the highest earnings from the sponsor-directors and placement holders share sale in recent months.
And Tk 94 million came from TREC (trading right entitlement certificate) holders’ commission.
The DSE, on behalf of the government, collects tax as TREC holders’ commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
The government collected revenue worth Tk 1,860 million in nine months (July-March) in the current fiscal year which was Tk 1,837 million in the corresponding period of the previous fiscal, the DSE data shows.
The investors mostly followed “go-slow” strategy throughout the month amid persistent liquidity shortage which diluted the turnover, said a leading broker.
The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17 and Tk 2.33 billion in FY 2017-18 on TREC holders’ commission and share sales by sponsor-directors and placement holders.
However, the DSE paid tax worth Tk 4.47 billion in the fiscal year 2010-11, the highest in its history, when the market witnessed a wild trend before crashing.
