This paper develops a methematical model for growth and exploitation of a schooling fish species using a realistic catch-rate function and imposing a tax on the catch to control harvesting. Fishing effort is assumed to depend on the net revenue. The steady states of the system are determined and their local and global stabil-ity are discussed. Taking the tax as a control variable; the optimal harvest policy is formulated and solved as a control problem. The results are illustrated with the help of a numerical example.