Real estate tax tries to stem rising land prices
- Written by Mizzima News
- Category: Investment
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Burma’s government is trying to lower the skyrocketing price of land in industrial zones, officials said, according to domestic reports.
Currently, one acre (0.405 hectare) of land in Rangoon’s Hlaingtharya, the largest industrial zone, is priced at 250 to 400 million kyat (about US$ 300,000 to $476,000), while land in the Thilawa zone is around $226,000.
Prices of land plots, houses, buildings and apartments in the commercial center of six Rangoon downtown areas, especially on the main roads, have risen six times compared with the previous five years, according to some reports.
Entrepreneurs said the current industrial land prices could impact foreign investment, as it spills over to land for homes and small businesses.
Reports said that the ministry at the President's Office is introducing a measure to establish land price control committees involving the government and the private sectors in Rangoon and Mandalay.
In August, the government increased its tax rate on real estate deals by 22 percent in terms of value on the deal after a provisional measure of reducing such tax had remained unchanged since August 2007.
Observers said Burma’s real estate business revived in late 2007 and prices have risen since then.