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
