Saturday, 7 June 2014

Gov’t to exempt export tax for small businesses

The government is planning to collect value added tax in advance instead of commercial tax, and to scrap taxation on small export businesses according to Min Htut, Director of the Internal Revenue Department.

“Currently, it has been reduced step by step to use value added tax instead of commercial tax. Soon, we are planning to exempt export tax to zero percent. Money that export business people have to pay will be returned. The next thing is that there will be vouchers with security marks at every step,” said Min Htut.

Myanmar is planning the tax exemption ahead of its joining the ASEAN Economic Community on December 31, 2015.

At present, tax rates are five percent for crude oil exports, 50 percent for teak exports, 30 percent raw jewels like jade and ruby, and ten percent for gasoline, diesel oil, and airplane petrol.

When putting commercial tax on local commodity production, services and trade sector, over US$ 15,000 will be exempted for a whole year.

No tax will be collected from firms who earn less than USD 15,000.

source: Eleven Myanmar
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