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Developers Urge Government to Temporarily Reduce Tax to 5 percent

During a meeting with the Yangon Regional government held at MCC on February 17, construction developers urged the government to temporarily reduce the commercial tax from 30 percent to 5 percent for a period of two years.

The Myanmar Licensed Contractors Association welcomed the income tax reduction in the Union Tax bill 2018, and supported the bill to be enacted timely.

‘‘We urged the government to reduce bank interest rates in order to help with the challenges the construction sector faces. This was like a consultation meeting between the government and developers,’’ Daw Nan Su Shwe Sin, vice president of the association, said.

A 30 percent commercial tax, and a 4 percent stamp tax are the main factors that slowed down the real estate market, the developers pointed out.

The association urged the government to help them get 3-10 year loans from banks depending on the size of the project, to reduce interest rates on bank loans from 13 percent to 9 percent, to help potential buyers get 15-20 years loans, and implement government funded construction projects.

According to reports in local media outlets during the month of February, realtors were quoted saying that the real estate market has dropped by 70 percent in the last two years, and Myanmar Construction Entrepreneurs Association had also urged the Mandalay regional government to reduce commercial tax in real estate in the meeting in January.

U Kyaw Win, union minister of the Minister of Planning and Finance, once said in 2017 that the government was considering revising the 30 percent commercial tax to 20 percent.

Source: Myanmar Business Today

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