August 19, 2016

Energy Ministry denies failing to contribute 51 per cent of tax revenue to State budget

U Than Htay Aung, Director of Myanma Oil and Gas Enterprise.  Photo: A One Soe
U Than Htay Aung, Director of Myanma Oil and Gas Enterprise.
Photo: A One Soe

AN official from the Energy Ministry denied reports by some newspapers and journals that the ministry’s Myanmar Oil and Gas Enterprise failed to contribute 51 per cent of its tax revenue earned from the country’s gas production to the State budget.
We had already explained that Moore Stephens, an independent international audit team who prepared the Extractive Industries Transparency Initiative country report and civil society organisations as well that the ministry has no power to use the amount of revenue on its own volition, said Director U Than Htay Aung of Myanmar Oil and Gas Enterprise.
The director stressed the need to read between the lines as details are stated in the Myanmar’s first EITI report.
This money can be used in accord with instructions of the Ministry of Finance following the government and Parliament approvals, said the director, adding that the ministry is subject to audit by the Union Auditor-General Office every six month.
Since the 2012-2013 fiscal year, state-owned enterprises have run their businesses on a commercial basis and they have been allowed to open cash accounts and other accounts at Myanmar Economic Bank under the title of Union Fund.
The other account allows 55 per cent of the revenue to be brought to the next fiscal year under the agreement of the government after making a contribution which comprises 25 per cent income tax on the revenue and 20 per cent contribution to the State budget.
It is aimed at enabling the SOEs to stand on their own feet with the use of own funds in future, said Director U Than Htay Aung.
According to the ministry, the Yadana project was launched in 1998, followed by the Yetagun project in 2000 and the Shwe and Zawtika projects in 2013.
The country produce 2 billion cubic feet of gas per day from the four projects and 75 per cent of the total production has been transported to Thailand and China under the previous agreements while the remaining 25 per cent including inland gas production is being used at home, said the ministry. — A One Soe (Kyemon)


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