MP asks to clarify profit sharing of Sky Net and Information Ministry

The Union Assembly MP Khaing Maung Yi asked the Ministry of Information to clarify the profit sharing between the ministry and the Shwe Than Lwin (STL Media)/Sky Net to the parliament and the tax that should be owned by the state.

Khaing Maung Yi said “I would like to discuss about the Ministry of Information. The public need to know the profit sharing and procedures practiced by the Myanmar Radio and Television (MRTV) and the STL Media for the sake of transparency. The contract between the ministry and the STL Media was signed in 2010 July 28. Now the authorities are changed. It needs to be clarification for the transparent age. So does the tax that should be owned by the state. I request to clarify the sharing budget to the parliament to clear suspect on detailed expenses,” during the parliament session.

On July 23, the MP Khaing Maung Yi discussed the issue based on the statistics of the second six months of 2012-2013 fiscal year and first six months of 2013-2014 fiscal year audited by the Union’s Auditor General Office, and the reports of the Public Accounts Joint Committee.

Khaing Maung Yi continued his discussion that there has been found of clashes of 248 in 2012-2013 and 289 in 2013-2014 which are against with the law, financial rules, disciplines for staffers and procedures of the ministries. In fact, the ministries are controlled with centralization system. Myanmar has 39 ministries. Among them, 38 ministries did not follow the rules and regulations and violated the financial rules apart from the Union’s Auditor General Office.

According to the contract signed between the Information Ministry and the STL Media (Sky Net), the Sky Net gets the tax exemption for three consecutive years start from the first year.

After receiving a 3-year tax exemption, the government will only receive 4 percent of the profit while Sky Net will receive 96 percent of the profit in the following five years after the company starts paying income tax.

The government will only receive 8 percent of the profit while the company will receive 92 percent of the profit in the next five years. In the third five-year term, the government will only receive 12 percent while the company will receive 88 percent.

In the fourth five-year term, the government will receive 16 percent and Sky Net will receive 84 percent. In the fifth five-year term, the government will receive 20 percent and the company will receive 80 percent. Also, in the sixth five-year term, the government will receive 25 percent and the company will receive 75 percent.

A summary of the profit shows that the government will only receive 25 percent of the profit until the sixth presidential term as each presidential term lasts five years and Sky Net will continue to take up to 75 percent of the profit until the last year.

Excluding the monthly fees and equipment fees, the daily advertising income of broadcasting media alone ranges between Ks 30 million and Ks 60 million a day. The one-minute advertising fee is set between Ks 500,000 and Ks 1.1 million.

However, Shwe Than Lwin Company was not included in the top 500 taxpayers list that was released last year.

Source: ELEVEN MYANMAR

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