Govt revenue from stocks falls sharply

The government's earnings from stock trading fell 56 percent year-on-year to Tk 3.89 crore in January, the lowest in three and a half years.
The transaction volume was on the decline with a continuous downward trend in share prices since the market debacle two years ago.
The previous lowest tax collection by the government from stock trading was Tk 3.09 crore in May 2009.
The tax collection is related to trading volume and value. More trading of stocks generates more tax for the government.
The daily turnover on the premier bourse came down to a five-year low at the Tk 100 crore level in January, according to data from the Dhaka Stock Exchange.
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.
As the tax is collected from turnover value, it's usual that tax will fall if turnover declines, a DSE official said.
“The tax collection from brokerage commission marked a significant fall in January,” the DSE official added.
The government's earnings from tax on sales of sponsor and placement shares also declined in the first month of this year.
The government bagged only Tk 0.21 crore in tax from share sales by sponsor shareholders in 2013.
Last year, the government earned tax worth Tk 100.11 crore through brokerage commission, while Tk 82.38 crore in tax from share sales by sponsor shareholders and placement holders in 2012.