Stock tax receipts reach 10-month high on buoyant trade

The government received Tk 15.30 crore in tax from stock trading in July, the highest in the last 10 months.
The revenue earnings were also 15.64 percent higher than the previous month's Tk 13.23 crore, according to data from Dhaka Stock Exchange.
The last highest amount of tax from the premier bourse was Tk 18.76 crore in September last year.
Transactions in the market were on the rise during the last couple of months with a recovering tone from the prolonged downtrend in share prices since the market debacle two and a half years ago.
The daily average turnover in July was Tk 695.66 crore, which was Tk 661.83 crore in June, and the figure was far below in the previous months.
As tax collection is related to trading volume and value, more trading of stocks generates more tax for the government, DSE officials said.
The DSE, on behalf of the government, collects the tax as brokerage commission at 0.05 percent and deposits the amount to the state coffer.
The market was witnessing an upward trend for a second month in July with the daily average trading value increasing by over five percent, said a DSE official.
As the brokerage commission is related to the turnover, the tax collection marked a rise following the increased turnover in July, the official added.
The government, however, earned lower tax from sales of sponsor and placement shares in July than the last month.
It bagged Tk 3.14 crore in tax from share sales by sponsor shareholders last month, down from Tk 3.19 crore a month ago.
From January to June this year, the government earned Tk 52.18 crore in tax through brokerage commission and Tk 12.84 crore in tax from share sales by sponsor shareholders and placement holders.