CNI News
21 August 2023
Tax would be exempted from five years to seven years for agricultural investment in Shan State and the agricultural sector of the state would be promoted as a priority, according to the Directorate of Companies and Investment of Shan State.
Investments in corn purification business, metal sector and electricity production sector in Shan State are to be allowed well.
As Shan State is in a good position to do business of agriculture, investment in manufacturing agro-based value-added products was the best, said U Thet Zaw, an economic analyst to CNI News.
" There are various kinds of tax. For example, there are import tax reductions for items applied in the Myanmar Investment Commission (MIC) and also different kinds of tax exemption such as income tax exemption. Tax is exempted depending on the business invested. As Shan State is good for agriculture, manufacturing agro-based foodstuff is the best, I think. Another thing is mining and the next is producing electricity. And there are many places that can produce hydro-power electricity in Shan State." he said.
There are fifteen investment businesses relating to agro-based manufacturing industries in Shan State and of them, there are 8 foreign investment businesses, said the Directorate of Companies and Investment of Shan State.
Upland plantations in Shan State
Investments entering Kyaing Tong (Keng Tung) and Tachileik in the eastern part of Shan State this year have decreased.
Entrepreneurs are losing the benefits provided by the MIC because they don't know the steps of the process relating to the investment, said U Htin Aung Naing, director of the Ministry of Hotel and Tourism of Shan State, to CNI News.
“ Local investors are still weak in understanding the matters relating to submission to the MIC. In fact, they should submit to the MIC before building. Only after they built with the MIC's approval, if they apply for the license, they can enjoy the benefits provided by the MIC. Most of them build in their own way. After they started building, they say they build under the permission from nearby municipality. When building is almost finished, they apply for a license at the hotel and tourism department saying they want to do the business of hotel service. At that time, the building has been built already and the hotel license has been got. So, it is difficult for the MIC to pass. So, there are negotiations among the municipality, hotel and tourism, and the MIC. Some of them apply for pre-construction permits. They have time to go in accordance with the steps of the MIC process. Largely,
those who have got the license are not given the benefits by the MIC. But those who do new investments are largely given the benefits." he said.
There are more domestic investments than foreign investments.
The investment in hotel business is about 20 to 30 per year, according to the Directorate of Companies and Investment of Shan State Hotel businesses are invested most in Lashio, Muse, Kutkhaing in northern Shan State, in Taunggyi, Kalaw, Pindaya, Ywangan and Pinlaung in southern Shan State and in Kyaing Tong and Tachileik in the eastern Shan State.
