August 19, 2016

Mandalay gold entrepreneurs request lowering 5% commercial tax on gold buyers

Mandalay gold entrepreneurs, meeting at the Hotel Wilson, were united in signing a proposal on 14th August to lower a 5% commercial tax levied on gold buyers because imposing a commercial tax on gold purchasers might adversely affect the gold market.
The gold merchants sent this signed proposal to the Myanmar Gold Entrepreneurs Association on 15 August. The gold entrepreneurs attempted to negotiated the taxation rate down to 0.25 or 0.5% but were unsuccessful. Therefore, they have requested to impose a taxation rate at 1%. If there are virtually no buyers, the taxation will also end in vain, said U Tin Tun, the chairman of the Mandalay Gold Entrepreneurs Association.
According to the commercial tax law, the gold purchasers have to pay a tax of Ks40,000 per tickle if the gold price is Ks8 lakhs per tickle. Currently, the gold price hit a record high up to Ks850,000, causing the goldsmith’s workshops and the gold foil businesses to stop working, he added.
Although the law has been approved by the Union Government, the Myanmar Gold Entrepreneurs Association has been planning to request the parliament to reduce the rate of taxation on gold trading since there is no by-law yet.
The legislators should have initially observed the gold market. And the tax rate should have been fairly levied to make the gold purchasers not evade the taxation, said U Maung Ko from Shwe Oak Aw goldsmiths.
An awareness campaign explaining commercial tax is also required to reach the public. The signed proposals by the gold entrepreneurs in regions and states will be submitted to the parliament at the end of this month.


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