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Revenue earnings from DSE rise


Published : 02 Sep 2021 10:02 PM | Updated : 03 Sep 2021 01:13 AM

Revenue earnings from Dhaka Stock Exchange (DSE) are on the rise as the premier bourse paid Tk 289 million as revenue in July, the first month of the fiscal year 2021-22 (FY22).

The amount is 54 per cent higher from the same month of last fiscal (FY21).

Sources said riding on the increasing trade volume, Government's earnings are expected to rise in the coming months of the FY 22. 

Earning from the DSE was Tk 188 million in July of FY 2020-21.

The market turnover rose significantly as the buoyant investors have given boost to the capital market amid growing confidence riding on various regulatory reforms to bring discipline in the market, said a merchant banker.

Of the total earnings in July 2021, Tk 233 million came from the (Trading Right Entitlement Certificate) TREC holders' commission, popularly known as brokerage commission, while Tk 56 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.

In July last fiscal year, Tk 60 million came from the TREC holders' commission and Tk 128 million came from the share sales by sponsor-directors and placement holders.

The government earned the amount on TREC holders' commission and share sales by sponsor-directors and placement holders.

The DSE, on behalf of the government, collects tax as TREC holders' commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.

A DSE official said the government earnings from the prime bourse rose as trading volume increased substantially in July, the first month of the FY2021-22, which helped higher revenue collection.

"The earnings are related to turnover. It's usual that tax will rise if turnover increases," he said.

He noted that as the turnover marked a growth in the first month of the current fiscal year compared to the previous fiscal year's July, so did the tax.

The daily turnover jumped to Tk 15.53 billion on average in July 2021, soaring 445 per cent over the previous fiscal year's July of Tk 2.85 billion.

DSEX, the prime index of the DSE, rose 275 points or 4.47 per cent in July 2021.

The government's revenue earnings from the DSE registered a 10-year high to Tk 2.66 billion in the FY 2020-21 as the DSE turnover recorded a decade high in few sessions in the last fiscal year.

The country's capital market also posted the highest return of 54 per cent in a decade in the FY 2020-21 despite the ongoing pandemic.

However, in the FY 2019-20, the government's earnings from the DSE plunged more than 10 years’ low to Tk 1.04 billion due to sluggish market turnover coupled with trading suspension for more than two months due to Covid-19 outbreak.

The DSE paid tax worth Tk 2.72 billion in FY2011-12, Tk 1.27 billion in FY2012-13, Tk 1.54 billion in FY2013-14, Tk 1.74 billion in FY2014-15, Tk 1.58 billion in FY2015-16, Tk 2.46 billion in FY2016-17, Tk 2.33 billion in FY2017-18 and Tk 2.51 billion in FY2018-2019 on TREC holders' commission and share sales by sponsor-directors and placement holders.

However, the DSE paid tax worth Tk 4.47 billion in the FY2010-11, the highest in its history, when the market witnessed a wild trend before crashing.