The Yangon region government plans to collect value added tax (Vat) instead of double taxation for the industries operating on CMP (cutting, making and packing) system, said Zaw Aye Maung, minister of the Rakhine Ethnic Affairs and Labour for Yangon region.
“The government is collecting double taxation for the goods produced in Myanmar. They collected tax for the imported raw materials and again collected tax when the finished products are being exported. So we have submitted a proposal to the union government to collect only value added tax for the corporations operating on CMP system,” he said.
Most of the factories especially shoe and garment factories are operating on CMP system.
Myanmar is attracting more foreign investors because of tax privileges granted by the government. Most foreign investors are from China, Japan, South Korea and Hong Kong and they mostly invest in the garment industry and other industries operating on CMP system.
The garment industry operating on CMP system exported about US$ billion worth of products in 2013 and on 2014.
The government is targeting to export products worth US$1.5 billion in this fiscal year, according to the Myanmar Garment Manufacturers Association.
Source: Eleven Myanmar