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December 10, 2019

Deputy Ministers explain Union Tax Bill 2019 at Pyidaungsu Hluttaw

 

The 23rd day of Second Pyidaungsu Hluttaw’s 13th Regular Session was convened yesterday, with the explanations Deputy Ministers about the Union Tax Bill 2019.
Deputy Minister for Industry Dr Min Ye Paing Hein talked about taxation plan on automobiles, out of other taxes on special commodities under the Union Tax Bill 2019.
He said it was learnt that MPs have suggested the range of engine capacity to be changed between 1501 CC and 2000 CC to between 1601 CC and 2000 CC; the tax to be reduced from the previous 30 to 20 per cent, and from the previous 50 per cent to 30 and 40 per cent respectively.
He remarked although the importers, manufactures and buyers of 1500 CC and below autos might enjoy 10 per cent discount in special commodity tax,

The Second Pyidaungsu Hluttaw convenes its 23rd-day meeting, 13th Regular Session, in Nay Pyi Taw. photo: mna

however, the State will get less revenue from this tax plan; the ratio between tax and GDP of Myanmar is just 6 per cent and it is very lower than that of Asean countries. The decline of tax for state revenue will led to shortage of funds for infrastructure, human resource development and healthcare services. As a result, the projects would be run by self-reliant budget and internal and external loans.
He concluded that taxes on special commodities based on engine capacity should not be changed, while Myanmar Investment Commission has allowed automobile assembling and manufacturing in the country with the Semi Knocked Down system in the country as a move to promote foreign investments in automobile industry.
Deputy Minister for Planning and Finance U Maung Maung Win said the categories of special commodities, in accordance with international practices, include the items that can pose risks to health and environment. Therefore, cigarettes, cheroots, tobacco, alcohol, beer and wines are levied with high tax to reduce their consumptions. Taxes are annually increased in foreign countries based on inflation rate. However, the tax rates in Myanmar are still lower than those of Asean countries, especially in automobile industry.
He also agreed with the discussion of MP U Than Soe to stop an exemption of commercial tax on some commodities. Paragraph 14 in the Union Tax Bill explained such commodities and services, including the items of basic foodstuff, agriculture, livestock, schools and offices, healthcare services, religious and social sector.
He then discussed the paragraph 25 of this bill, which is pointed out for the weakness by the MPs. The Deputy Minister expressed his appreciation for the concerns of MPs in this paragraph, and the matter should be controlled by the Anti-Corruption Law.
He finally suggested the Pyidaungsu Hluttaw for approval of the Union Tax Bill 2019 in line with Hluttaw law and rules.
The discussions on this bill was also taken part by Deputy Minister for Agriculture, Livestock and Irrigation U Hla Kyaw, Deputy Minister for Natural Resources and Environmental Conservation Dr Ye Myint Swe and Deputy Minister for Commerce U Aung Htoo.
Pyidaungsu Hluttaw Speaker U T Khun Myat then presented a proposal sent by the President’s Office about expanding, revoking and renaming of villages, village-tracts, wards and towns in Kachin and Rakhine states. And Pyidaungsu Hluttaw put it into the record.
Member of Pyidaungsu Hluttaw Joint Bill Committee U Aung Kyi Nyunt read out the findings and recommendations of the Joint Bill Committee on the controversial Plant New Species Protection Bill 2019.
The Pyidaungsu Hluttaw Speaker invited the list of MPs who want to discuss the bill.
Joint Public Accounts Committee’s Vice Chairman U Aung Min and its member U Nay Myo Tun tabled the motion on the Union Budget Bill for 2019-2020 fiscal year and it was approved by the Hluttaw.
Deputy Minister for Planning and Finance presented the Union Budget Bill for 2019-2020 fiscal year to the Hluttaw for approval in line with Sub-paragraph (A) of Paragraph 91 under Pyidaungsu Hluttaw Bylaw, and it bill was approved by the Hluttaw.
The Deputy Minister for Industry explained about the plan to reciprocally recognize automobile parts in Asean region, which was sent by the President.
He said the plan could promote mutual understating in economic cooperation for Asean Economic Community, the flow of commodities and the establishment of a single market in the region. He added the plans could help removing unnecessary trade obstacles, and implement the global trade and guarantees for technologies, UN disciplines in timely manner and negotiations with the countries outside Asean region in line with the regional mutual agreement.
He added the government has show green light on this plan , and the approval was sought from the Hluttaw. The Speaker then invited the lists of MP who want to discuss the mtion.
The MP, then, discussed about taking US$ 185 million loan from Asian Development Bank to implement Community Development Project by the Ministry of Agriculture, Livestock and Irrigation.
The discussion was participated by MP Daw May Than Nwe from Ayeyawady Region constituency 11, U Kyaw Htay, MP U Kyaw Htay from Leshi constituency, MP Dr Tin Tin Win from Bago Region constituency 5, MP U Tin Maung Win from Seikkan constituency, MP U Whae Tin from Chin State constituency 11, MP U Wun Hla from Nanyun constituency, MP U Lar Min Htan from Chin State constituency 10, MP Daw Cho Cho from Ottwin constituency and U Saw Tun Mya Aung from Papon constituency.
The 24th day meeting of the Pyiduangsu Hluttaw session will be convened on 17th September. —Aung Ye Thwin, Aye Aye Thant

(Translated by Aung Khin)

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