Union Government is striving to extend land leasing term to over 70 year terms in Chin State

The Union parliament is likely to lease land in Chin State, one of Myanmar least developed states in Myanmar. The lease terms will likely be over 70-years, Myanmar Investment Commission said.

The state is receiving the least amount of both local and foreign investments even though it offers seven years in tax exemptions just as Sagaing Region and Magway Region do. Therefore, the issue of low investment in Chin State compared to other states and regions was submitted to the Vice President of Myanmar at the 23rd meeting between him and local business leaders.

“The tax exemption remains the same—it’s still seven years. However, the union government informed us that they will extending the land leasing terms. But the long-term leasing can be difficult because local people are not interested in leasing their land for generations. It can work if you do projects such as contract farming,” U Kyin Lian Man, Vice President of Chin State Chamber of Commerce and industry, said.

An awareness raising campaign should be held, he added, to convince local people want to lease their lands.

Chin State has various water resources which can produces electricity up to 1,500 megawatts, feasibility studies have been conducted for hydropower plants. Since production cost of electricity in Chin State is higher compared to other regions and areas, the government should buy back the electricity at the price of K120 per unit from the investors to encourage them to make investments in the electricity production sector, local business leader urged during the meeting.

The government responded that they will submit to the Union Ministry with the goal to negotiate a price change from the current price of K52 per unit.

Moreover, local business leaders requested the government implement industrial zones in Bone Zone, Tedim and Khaigkam townships. The government has planning to implement an industrial zone on 50 acres on land in Palatwa Township; however, the project has not been implemented.

Earlier reports said that the state government, as an incentive to encourage investors, they will grant ownership of land to the local investors who invest in the hotel sector in Chin State.

The government made three zones based on the development conditions of the location, they provided three different tax exemptions based on locations: three years, five years and seven years. However, local businessmen requested the government give tax exemptions more than seven years for Chin State.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/government-lease-land-chin-state-over-70-year-terms )

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