Government relaxes restriction on FE earnings
YANGON, Aug. 18 - Myanmar government recently announced it would allow the taxpaying foreign exchange earners to use their earnings in import business, local media reported this week.
Myanmar Minister for Finance and Revenue Maj. Gen. Hla Tun said at a commerce ministry meeting on Aug. 5 that the move is to facilitate the raising import sector and to attract remittances into an official channel, the 'Myanmar Times' weekly reported.
Up to last month, remittances of Myanmar workers abroad as well as foreign currency earnings from hotel and tourism sector, and real estate and property rentals were not allowed to use in import business, significantly lowering the value of the earnings, another weekly paper 'The Voice' said.
It is not clear how much is the amount of foreign exchange earnings inside Myanmar and the annual remittances into Myanmar.
Majority of Myanmar citizens working abroad remitted their incomes through unofficial channels ( illegally remitting through private business contacts ), the reports said.
Under the new system, remittances and hard currency earnings inland must be channeled into state owned banks paying 10 percent income tax, before becoming official earnings, the papers said.
Traders and business analysts in Yangon welcomed the move saying it would benefit all party involved in the process but warned that the success of the new system would depend on how easy the import licenses can be acquired.
Myanmar government last month imposed new regulations for export-import licenses that now can only be issued by the trade council, the highest authorizing body, according to The Voice weekly.
Myanmar's foreign trade volume reached U.S. dollar 4.9 billion in the previous fiscal year ending March 31, with imports of nearly 2 billion.
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Myanmar Minister for Finance and Revenue Maj. Gen. Hla Tun said at a commerce ministry meeting on Aug. 5 that the move is to facilitate the raising import sector and to attract remittances into an official channel, the 'Myanmar Times' weekly reported.
Up to last month, remittances of Myanmar workers abroad as well as foreign currency earnings from hotel and tourism sector, and real estate and property rentals were not allowed to use in import business, significantly lowering the value of the earnings, another weekly paper 'The Voice' said.
It is not clear how much is the amount of foreign exchange earnings inside Myanmar and the annual remittances into Myanmar.
Majority of Myanmar citizens working abroad remitted their incomes through unofficial channels ( illegally remitting through private business contacts ), the reports said.
Under the new system, remittances and hard currency earnings inland must be channeled into state owned banks paying 10 percent income tax, before becoming official earnings, the papers said.
Traders and business analysts in Yangon welcomed the move saying it would benefit all party involved in the process but warned that the success of the new system would depend on how easy the import licenses can be acquired.
Myanmar government last month imposed new regulations for export-import licenses that now can only be issued by the trade council, the highest authorizing body, according to The Voice weekly.
Myanmar's foreign trade volume reached U.S. dollar 4.9 billion in the previous fiscal year ending March 31, with imports of nearly 2 billion.
END
posted by Myat Thura @ 11:01 AM
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