Govt’s tax collection from DSE drops by 24.42pc in Jul-Dec
The government’s revenue collection from Dhaka Stock Exchange dropped by 24.42 per cent or Tk 34.8 crore in the first half (July-December) of the current financial year (2018-19) compared with that in the same period of the FY 2017-18 due mainly to a bearish trend at the market.
National Board of Revenue in July-December of FY19 collected Tk 107.67 crore in tax including tax on turnover and tax on sponsor-directors’ share sales against Tk 142.47 crore in the first half of FY18, DSE data showed.
The government in the period (July-December) of FY19 received Tk 78.9 crore in tax on turnover and Tk 28.77 crore on sponsor- directors’ share sales which was Tk 103.76 crore and Tk 38.71 crore respectively in the same period of FY18.
NBR in FY18 received Tk 237.49 crore in tax from DSE against its receipt of Tk 247.76 crore in FY17.
Under the Income Tax Ordinance 1984, DSE 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 shares
sales.
The bourse on behalf of the government collects tax as per the revenue board-set guidelines and submits it to the respective department of NBR, DSE officials said.
The amount of the government’s tax collection from the bourse depends on its turnover and sponsor-directors’ capital gain, they said.
Market operators said that the market was bearish in the first half of FY19 due to the political uncertainty ahead of national elections which were held on December 30, 2018.
They said as the turnover at DSE declined in the first half of FY18, so did the tax collection from the bourse.
The total turnover at the bourse slumped by 24.55 per cent to stand at Tk 78,326.48 crore in July-December of FY19 from Tk 1,03,820.34 crore in the same period of FY18.
The average turnover stood at Tk 644.32 crore in July-December of FY19 (with 121 trading sessions) compared with that of Tk 828.50 crore in the same period of FY18 (with 125 trading sessions).
Tax collection by the government had hit a record single-month high in November, 2010 when it received Tk 47.71 crore, thanks to a market boom.
NBR collected Tk 424.72 crore in tax from DSE in FY12 and Tk 234.31 crore in FY13. The revenue board received Tk 259.42 crore in tax in FY14 from the bourse.
Source: http://www.newagebd.net