Wednesday, 2 July 2014

IRD expects Ks 329 bn revenue from oil and gas sector

The Internal Revenue Department has projected to collect Ks 329 billion (US$329 million) in revenue from the oil and gas sector, according to a survey done by International Growth Centre, MDRI-CESC and the Asia Foundation.

In the previous fiscal year, the government’s energy revenue amounted to Ks 4.3 trillion ($4.3 billion), followed by Ks 385 billion ($385 million) from forestry, Ks 303 billion ($303 million) from mining and Ks 1.3 trillion ($1.3 billion) from electricity, the survey said.

The revenues include 25 per cent profit tax from state-owned enterprises, 20 per cent dividend payment on equity stakes held by the central government and other taxes on natural resources.

Based on the survey, the IRD has targeted to collect Ks 0.89 million ($890) from land tax, Ks 1 billion ($1 million) from water tax, Ks 0.03 million ($30) from dam tax, Ks 1.8 billion ($1.8 million) from forest products, Ks 7.45 million ($7,450) from mineral resources, Ks 1.08 billion ($1.08 million) from fishery, Ks 0.5 million ($500) from rubber, Ks 329 billion ($329 million) from oil and gas, Ks 1.4 billion ($1.4 million) from gems and Ks 11.46 billion ($11.46 million) from power generation.

The projected revenue from oil and gas constitutes the largest contribution to the state’s coffers for the current fiscal year.

According to the IMF report, tax revenue from all sectors in Myanmar for 2013-14 made up 4.4 per cent of GDP (Ks 2.609 trillion/$2.609 billion), ranking the lowest in the Southeast Asia. For comparison, in 2012, Cambodia collected tax amounting to 11.6 per cent of GDP. Thailand at 16.5 per cent and the Philippines at 12.9 per cent.

It remains unclear about taxes paid by state-owned enterprises, particularly the Myanmar Oil and Gas Enterprise, and by private companies involved in the extractive industry.

source: Eleven Myanmar

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