Tax receipts from DSE hit 11-year high

The government’s revenue earnings from the Dhaka Stock Exchange (DSE) hit an 11-year high to Tk 290.88 crore in the just-concluded fiscal year 2021-22.

The National Board of Revenue (NBR) tax earnings from the bourse jumped by 9.17 percent in the fiscal 2021-22 compared to the previous fiscal year. 

The NBR received Tk 290.88 crore in FY22 in taxes, which was Tk 266.44 crore in FY21 from the stock exchange.

The higher turnover boosted the revenue earnings from the prime bourse, according to the DSE.

The earnings came from the TREC (trading right entitlement certificate) holders’ commission, share sales by sponsor-directors and placement holders.

Of the total earnings in FY22, Tk 218 crore came from the TREC holders’ commission, popularly known as the brokerage commission, Tk 72.87 crore from the share sales by sponsor-directors and placement holders, the DSE data showed.

A total of Tk 180 crore was collected from share and unit transactions in FY21. Another Tk 86.28 crore was collected from the sales of the sponsor directors or placement shares. 

The highest tax, Tk 50.70 crore, from the members of stock exchange or TREC’ commission was earned in September of FY22.

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

The prime bourse has deposited the amount through the electronic tax deducted at source (e-TDS) system to pay taxes to the public exchequer under Tax Zone-13 of the NBR using the e-TDS system.

The government’s revenue earnings was Tk 272 crore in FY12, Tk 127 crore in FY13, Tk 154 crore in FY14, Tk 174 crore in FY15, Tk 158 crore in FY16, Tk 246 crore in FY17, Tk 233 crore in FY18, Tk 251 crore in FY19, and Tk 104 crore in FY20 on TREC holders’ commission and share sales by sponsor-directors and placement holders.