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Tax receipts from stocks in Bangladesh fall by half
Publication Date : 04-01-2013
The Bangladesh government's earnings from stock trading declined by half in 2012, as the trading volume was on the decline with a downward trend in share prices continuing for the second consecutive year.
The government earned tax worth 1.001 billion taka (US$12.53 million) in the just concluded year, down from 2.07 billion taka in the previous year, according to statistics from the Dhaka Stock Exchange (DSE).
The daily turnover on the premier bourse came down by almost 63 per cent to the 2.5-billion taka level at the year-end, from around 6.7 billion taka at the beginning of 2012.
The daily transaction volume also declined by 45 per cent to 69.20 million shares and mutual fund units in December, from 126.9 million at the beginning of the year.
The benchmark index of the premier bourse, DGEN, went down by 21 per cent to 4,219 points on December 30, from 5,351 points on January 1 last year.
The DSE, on behalf of the government, collects the tax as brokerage commission at 0.05 per cent and deposits the amount to the state coffer.
The government's earnings from tax on sales of sponsor and placement shares also declined last year.
The government bagged 823.8 million taka in tax from share sales by sponsor shareholders and placement holders in 2012, against 1.003 billion taka a year ago.
“The earnings are related to turnover. It's usual that tax will fall if turnover declines,” said Shafiqur Rahman, deputy general manger of the DSE.
“The turnover marked a significant fall in 2012, so did tax,” he added.
*US$1= 79.86 taka