Chin State seeks 10 year tax exemptions
THE Chin State Chamber of Commerce and Industry (CCCI) is asking the government for approval to raise the tax-exempt period granted to investors in the state to be raised
Ceu Hlei Lian, the chair of the Chin State Chamber of Commerce and Industry submitted the request to the Private Sector Development Committee headed by Vice President U Myint Swe on January 12, in Yangon.
The proposal calls for the tax-exempt period in Chin State, which will also be designated the least-developed state in the country, to be raised to 10 years from the present seven years in order to attract more local and foreign investors.
“The government should prioritise development in Chin State more than others. The state’s tax-exempt period is now seven years and is the same with other regions, like Magway and Sagaing. Investors are more likely to invest in other more developed states based the tax exemptions. So, the government should allow for longer tax exemptions in Chin,” said U Kap Khen Pau, a member of the Chin State Chambers of Commerce and Industry.
In 2017, the Myanmar Investment Commission (MIC) laid out tax exemption periods for states and regions based on their level of development – seven years for investors in less developed regions, five years in moderately developed regions, and three years in developed regions.
CCCI said longer tax exemption should be given in Chin State as it currently has no industrial zones. The chamber is also asking the government to set up industrial zones in the state create jobs and to improve the state’s infrastructure.
The state needs proper electricity and road infrastructure. With the current conditions few investors would be interested in Chin State. Currently, we are working with the government to resolve these issues,” U Kap Khen Pau said.
At present, there is no foreign investment in Chin State and only one local investor who has set a hotel business, according to the Directorate of Investment and Company Administration.
The government and private sector are planning to hold an investment fair in Chin State this March.