Jan 29, 2012

Myanmar - Burma eyes tax incentive law to attract investors



The Burmese government is drafting a tax incentive law which will be most attractive in the region, as it prepares to achieve a six-per-cent growth target in 2012, according to an economic minister.

U Soe Thein, Burma's Industry Minister, told a group of international journalists, that the tax incentive law could be passed by end of the upcoming parliamentary session in Febuary. And a plan is underway to boost international business community's confidence in the kyat currency in consultation with the International Monetary Fund (IMF).

U Soe Thein led a delegation that also included Rail Transportation Deputy Minister Thura U Thaung Lwin in their first participation at the World Economic Forum. "We were very busy meeting global policymakers, officials and CEOs," the minister said candidly.

The Burmese delegation's presence here followed a recent visit by WEF Chairman Klaus Schwab to Burma where he met both President Thien Sein and opposition leader Ang San Suu Kyi. He invited both to attend the Davos forum.

U Soe Thien said he received a lot of ideas and learned about many issues at many of the WEF sessions including the Eurozone crisis, job creation, sustainable energy and green policy, resources management, population and growth, poverty eradication, refugee and displaced persons, women and children, SMEs, anti-corruption and good governance, "We learn what we (need) to do in the future...We are honoured to attend."

In his meeting with CEOs, the minister said they extend recognition to what the Burmese government are doing on reform, interested in the country's growth and investment potentials, and the peace process with minorities. He reiterated that the reform process was not due to pressure from external or the economic sanctions but out of desire of the Burmese people.

He said Burma was centrally located to engage in trade and investment with China, India and Africa; has the market as well as skilled labour, plus availability of energy resources including gas and hydroelectric. Like Norway and Sweden, we also have access to two seas and have fishing potential, U Lwin noted, adding that his country was also the world's biggest producer and exporter of rice in the pre-war era.

U Soe Thien said with assistance from Japan, his government is working on a tax investment incentive package which would be the most attractive in the region. The package would include an eight-year tax exemption with possible extension if the ventures proved profitable for the country. The law could be passed on this by the Febuary parliamentary session.

The minister also said that during the December and January consultations with the IMF, the authorities are working on "currency exchange unification" and mechanisms for implementing fiscal and monetary policies. He said the plan to upgrade the central bank, now a department under the Finance Ministry, to grant it independent was being proposed.

The Burmese industry minister said three economic zones are being set up: of which one would be Dawei (being undertaken by Italian-Thai Development Co) and another near Yangon with parts going to facilitate firms from China, from Japan, from Korea, from Thailand and from the rest of the world.

"Yes, we are in a hurry..," he said, citing the preparation from 2013 Southeast Asian Games, 2014 Asean Chair assumption with 400 meetings scheduled and Asean Economic Community in 2015 and to achieve the UN Millennium Goals.

"Tourism is booming and we need more hotels, certainly," he added.

Pana Janviroj
Asia News Network



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