Government’s five years of tax exemptions offer lured more foreign investment into Bago Region

The government’s tax exemption program launched in February 2017, offered investors five years of tax exemptions, and was able to bring foreign investments into Bago Region, according to regional Directorate of Investment and Company Administration.

From 1989 to November 2018, the region saw $1.818 billion in foreign direct investments from 85 foreign companies, while citizen investments were K946 billion by 39 companies from 1994 to November 2018.

“Bago City receives most of the investments in the region. This is because of the Hantharwaddy Airport project. While Yangon offers a three-year tax exemption, Bago Region offers a five-year of tax exemption, which was decided by the union government. The tax exemption is the key drive for increased investments in Bago Region. Investments will increase year by year,” said U Nyunt Shwe, Regional Minister for Planning and Finance.

China, Taiwan, Japan, Singapore, and Thailand are the biggest investors in Bago Region. The industrial sector is the recipient of most of the investments receiving $1.42 billion and K57.07 billion. This is followed by onshore oil extraction with investments worth $215 million, and the agricultural sector with $65 million.

The regional government will approve investment proposal as quickly as possible if the proposal is a value-added factory project or labor intensive project, as the government wants to create jobs for local people,

In addition to tax exemptions that drive investments into Bago Region, other factors such as its close proximity to Yangon — within 50 miles distance — and to Thilawa SEZ, as well as having the Hantharwaddy Airport project and a large labor pool available all contribute to the increased number of investments.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/tax-exemptions-lure-investments-bago-region )

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