• Friday, November 28, 2014

Tax earnings from stock trading dip 40pc in May

Star Business Report

The government's tax earnings from stock trading dropped 40 percent month-on-month in May due to falling trade volumes.
The government earned Tk 5.84 crore in taxes in May, down from Tk 9.79 crore in April, according to data from Dhaka Stock Exchange.
Average daily turnover declined 34 percent to Tk 307.67 crore in May, compared to the previous month.
The benchmark index of the premier bourse, DSEX, also fell by 3 percent to stand at 4,430 points at the end of last month.
The DSE, on behalf of the government, collects tax as brokerage commission at 0.05 percent and deposits the amount to the state coffers.

The tax is related to stock trading, a top DSE official said, adding that higher turnover means higher tax collection.
“So, it's usual to see taxes fall with declining stock trading and turnover.”
The government's earnings from tax on sales of sponsor and placement shares also fell by 1 percent to Tk 3.86 crore in May from the previous month.
Between January and May, the government received Tk 46.42 crore in tax from stock trading, while the earnings from tax on sales of sponsor and placement shares stood at Tk 16.01 crore.

Published: 12:00 am Tuesday, June 10, 2014

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