NBR's tax receipts from DSE grow by 85pc in July-Sept
The government's revenue earnings from the Dhaka Stock Exchange (DSE) grew by 85 per cent year-on-year basis in July-September period of the ongoing fiscal year compared with that in the same period of the previous fiscal year.
The National Board of Revenue (NBR) received taxes worth Tk 1,311 million in July-September of 2021-22 against Tk 709 million in the same period of the previous fiscal, according to DSE data.
Of the total earnings in July-September, Tk 1,191 million came from tax on trading right entitlement certificate (TREC) holders' commission, also known as brokerage commission, while Tk 120 million came from tax on share sales by sponsor-directors and placement holders, the DSE data showed.
In the same period of the last fiscal year, Tk 469 million came from tax on brokerage commission and Tk 240 million from tax on share sales by sponsor-directors and placement holders.
The DSE, on behalf of the government, collects tax on TREC holders' commission and share sales at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
The government earnings from DSE also rose by 3.60 per cent month-on-month in September 2021. The daily turnover, an important gauge, jumped to Tk 21.56 billion on average in the July-September period of the current fiscal year, as investors put fresh funds in stocks.
DSEX, the key index of the DSE, gained 1,179 points or 19 per cent in the three months of the current fiscal year.
The government's revenue earnings in the FY 2020-21 from the DSE hit a 10-year high at Tk 2.66 billion, as the DSE turnover recorded a decade-high in few trading sessions in the last fiscal year. The country's capital market also posted the highest return of 54 per cent in a decade in FY21.
In the FY 2019-20, the government earnings from the DSE dropped below the 10 year low to Tk 1.04 billion due to sluggish market and suspension of trading for more than two months due to the Covid outbreak.
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, Tk 2.33 billion in FY 2017-18 and Tk 2.51 billion in FY 2018-19 on TREC holders' commission and share sales by sponsor-directors and placement holders.
The NBR received from DSE the highest Tk 4.47 billion in taxes in the FY 2010-11 when the market witnessed a bubble-up.