FDI needed for undeveloped regions but no plans for tax incentives

Although more foreign direct investments (FDI) are needed for the undeveloped Regions and States, there are no plans to revise current tax relief scheme as yet, said U Thant Sin Maung, acting director general of the Directorate of Investment and Company Administration (DICA).

U Thant Sin Maung was responding to requests for tax incentives from Chin State officials in order to attract foreign investors to the state.

Recently, U Salai Lian Luai, the chief minister of Chin State, also asked the Myanmar Investment Commission to provide his state with tax incentives after the commission held forums promoting Chin and Rakhine states to foreign investors.

“It is true that some regions are lacking FDI. Tax reliefs will be provided for Chin State based on the law in due course,” said U Thant Sin Maung.

Under the Myanmar Investment Law, Chin State can be exempted from corporate income tax for up to seven years, which is the period awarded for under-developed regions in Myanmar.

Unlike other states and regions, undeveloped areas like Chin, Kachin and Rakhine states enjoy lower volumes of local investments and to date have yet to receive FDI.

Of the 22 foreign firms that invested in Myanmar in April, 15 were in Yangon, three in Bago and one each in Ayeyarwady and Kayin. The majority of firms invested in the industry sector. The total volume of FDI amounted to US$53.3 million, U Thant Sin Maung said.

“For the period from October 1, 2018 until April 5, 2019, Myanmar enjoyed a total of 147 foreign investments amounting to $1.38 billion. During that period, Thilawa Special Economic Zone received investments worth $121 million,” said U Thant Sin Maung.

Source: Myanmar Times

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