Chin State seeks 10 year tax ex­emp­tions

The Myanmar Times - - Business - THIHA KO KO thi­[email protected]­times.com

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.

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