Chiang Mai (Mizzima) – In a move to stimulate the economy, exporters in Burma are getting a big break. The Internal Revenue Department has lowered the profit tax from five per cent to two percent; the export tax has been eliminated.
The new tax rates were announced following a meeting on August 11 in Naypyitaw, the capital. The tax rate was reduced after the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) urged the authorities to cut export taxes more in order to lower the price of export goods to compete in foreign markets.Earlier, businessmen had to pay an 8 per cent export tax and 2 per cent profit tax; later, the export tax was cut to 5 per cent.
A well-known businessman in Rangoon said, ““The reduction is very good for exporters. In fact, other countries do not impose taxes on export goods. Only import taxes are imposed.”
The Burmese kyat has recently strengthened against the US dollar, reducing export income and exporters have suffered.
“Now, export businesses will be able to do better than before,” said a businessman.
The currency exchange rate in Rangoon on Tuesday was 750 kyat per 1 US dollar.
