Bangladesh: Govt gets Tk 26.55cr more in taxes from DSE in FY14

Dhaka, July 4 (New Age): Government’s tax collection from the Dhaka Stock Exchange increased by 20.85 per cent or Tk 26.55 crore in the just concluded fiscal year 2013-2014 compared with that in the previous fiscal year. The DSE in the last fiscal year paid Tk 153.84 crore in taxes including taxes on turnover and on sponsor-directors’ share sales against Tk 127.29 crore it had paid in the previous fiscal year, a DSE data showed. The government during the period got Tk 112.53 crore in taxes on turnover, while it was Tk 85.70 crore in the previous fiscal year. The bourse in the FY 2013-2014 collected Tk 41.31 crore in taxes on sponsor-directors’ shares transactions, while it was Tk 41.58 crore in the fiscal year 2012-2013. The turnover of the DSE hit a two-year high of Tk 1,294.61 crore on July 9 in 2013, which was the highest after Tk 1,341.26 crore recorded on July 31 in 2011. DSE under the section 53 BBB of Income Tax Ordinance 1984 collects 0.05 per cent taxes on turnover, while sponsor-directors and placement holders are bound to pay 5 per cent taxes on their capital gain on shares sales as per the section 53M of the Income Tax Ordinance 1984. The government’s tax collection from the bourse depends on its turnover and sponsor-directors’ capital gain, said DSE officials. They said as the turnover increased in the FY14, tax collection from the DSE rose. The National Board of Revenue in the fiscal year 2011-2012 got Tk 168.91 crore in taxes on turnover against Tk 102.76 crore in taxes on sponsor-directors’ shares sales. The bourse after its inception gave highest taxes on turnover of Tk 325.91 crore in 2010-2011 when the market had witnessed the bubble-burst. Tax collection by the government had hit a record single-month high in November 2010 when it received Tk 47.71 crore, thanks to the market boom.