Tax income from stocks plunges 47pc in July

The government's tax earnings from the stockmarket dropped around 47 percent month-on-month in July due mainly to a declining trend in turnover.

The government earned Tk 4.11 crore in taxes in the first month of this fiscal year, down from Tk 7.73 crore in June, according to data from Dhaka Stock Exchange.

The daily average turnover on the premier bourse fell 14.16 percent to Tk 288.65 crore last month from Tk 336.30 crore in June.

The cut in trading period by one hour during the month of Ramadan, which began on June 30, also pulled down turnover.

In addition, due to Eid-ul-Fitr holidays, trading took place on 18 days last month compared to 22 days in the previous month.

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 government's earnings from tax on sales of sponsor and placement shares also declined 44.7 percent to Tk 2.4 crore in July, from Tk 4.34 crore a month ago.

Between January and July, the government received Tk 58.26 crore in tax from stock trading, while the earnings from tax on sales of sponsor and placement shares stood at Tk 22.75 crore.