Ministry Reduces Taxes For YSX Companies, Markets to Gain

The Ministry of Plan­ning and Finance reduced income-tax for companies listed on the Yangon Stock Ex­change by 5 percent to incentivize companies to list on the nascent capital market, U Htay Chun, a member of the Securities and Exchange Commis­sion of Myanmar (SECM), told Myanmar Business Today.

In a bid to bolster the developing market and attract qualified public companies, on August 14 the Ministry of Planning and Finance heeded in­dustry calls and relaxed the income-tax rate for YSX listed companies by 5 percent.

“Myanmar companies have expressed their approval of this tax reduc­tion. The only lingering question is how long this will be in effect, 1 year, 5 years, or permanently,” U Htay Chun told MBT.

According to the annu­ally issued Government Revenue Law, public companies have had to pay a 25 percent income tax.

In their statement the ministry also assured companies who’ve pre­viously avoided taxes of their immunity so long as they start complying and henceforth pay federal in­come taxes.

The Department for Company Taxes under the Ministry of Planning and Finance, has refused MBT’s request for com­ment.

Though economic ex­perts criticize YSX’s slow growth, U Htay Chun counters that any fledging stock exchanges encoun­ter similar experiences.

He pointed to the Laos Security Exchange and Cambodia Security Ex­change as having been op­erating for five years with the former having only five listed companies and the latter just three.

“In the next year we will likely double the amount of listed companies. It isn’t objective to compare the YSX to neighbors in Singapore or Thailand who have been operat­ing for decades,” U Htay Chun said.

Currently, the four YSX listed public companies are First Myanmar Invest­ment (FMI), Myanmar Thilawa SEZ Holdings Public Limited (MTSH), First Private Bank (FPB) and Myanmar Citizen Bank (MCB).

Among the several com­panies applying to be list­ed are Great Hor Kham Public Company and ag­ribusiness corporation MACPO, U Thet Tun Oo, Senior Executive Man­ager of YSX, enthusiasti­cally noted.

Source: Myanmar Business Today