• Friday, March 06, 2015

Govt's tax receipts from stocks slide

Sarwar A Chowdhury

The government's tax earnings from the stockmarket declined around 5 percent in 2013 from the previous year on the back of falling trade volumes, even though share price indices witnessed an upward trend.
The government earned Tk 95.26 crore in taxes in the just concluded year, down from Tk 100.11 crore in the previous year, according to statistics from Dhaka Stock Exchange.
Average daily turnover declined by 5 percent to Tk 400 crore in 2013, compared to the previous year.
The benchmark index of the premier bourse, DSEX, however rose 21 percent to 4,219 points on December 30 from January 1 last year.
The DSE, on behalf of the government, collects the tax as brokerage commission at 0.05 percent and deposits the amount to the state coffers.
The tax is related to turnover, and a higher turnover generates higher taxes, said a top DSE official. “So, it's usual that taxes will fall if turnover declines,” the official added.
“As turnover declined in 2013, the government's earnings from the stockmarket also slid,” the DSE official said.

The DSE recorded the highest monthly tax earnings -- Tk 15.31 crore -- in July last year, while the lowest was Tk 3.22 crore in April.
The government's earnings from tax on sales of sponsor and placement shares also declined last year. It received Tk 30.68 crore in taxes from share sales by sponsor shareholders and placement holders in 2013, against Tk 82.38 crore a year ago.

Published: 12:00 am Friday, January 10, 2014

Last modified: 8:35 pm Friday, January 10, 2014

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