Jul 6, 2011

Myanmar cuts commercial tax to 5 pct for exporters

Myanmar has cut commercial tax for exporters to five percent from eight percent previously, with income tax of two percent remaining unchanged starting this month, local media reported Tuesday.

The measure was taken after depreciation of the U.S. dollar, which has caused loss among exporters, the Pyi Myanmar News quoted the Ministry of Finance and Revenue as saying.

The tax reduction was aimed at encouraging export and raising import, the report added.

Myanmar's foreign trade went up to 15 billion U.S. dollars in the fiscal year 2010-11 from 11.8 billion dollars in 2009-10, according to official statistics.

Despite the rise of foreign trade, the country's agricultural export dropped to 900,000 tons in 2010-11 from 1.3 million tons in 2009-10 and from 1.5 million tons in 2008-09.

Likewise, Myanmar's rice export also fell sharply to 500,000 tons in 2010-11 from 900,000 tons in 2009-10.

The decline was partly attributed to the depreciation of the U. S. dollar since the middle of 2010, which has also slashed exporters' earnings.

Natural disasters trimmed rice outputs in 2010. In October 2010, flood, triggered by heavy rain, occurred in many areas in Myanmar such as Mandalay, Magway, Ayeyarwady and Sagaing regions and Shan, Rakhine and Chin states, destroying some paddy fields in Ayeyarwaddy Delta region.

Meanwhile, Myanmar has projected to produce 41.8 million tons of paddy in 2010-11.

Myanmar mainly exports agricultural, animal, marine, mineral, forestry products and finished goods, while it imports cement, agricultural machinery and its spare parts, computer and electronic devices, motor cars, motorcycles, mobile phones and their accessories.

Source: Xinhua