Myanmar revenue drops by K 1.2 billion when compared to the same period of previous year due to the COVID – 19 pandemic19 Jun 2020
The COVID-19 pandemic has blighted all the businesses across the world, and Myanmar’s economy is no exception from it. The country revenue as of June 12 has dropped by K1.2 billion compared to the same period last year.
The country collected K4,278 billion as of June 12 this fiscal year while the total revenue last year was over K4,279 billion.
“The revenue before the COVID-19 pandemic was around K500 million higher than that of the same period last year. However, we are now seeing steady drops since the beginning of the COVID-19. It is mainly because almost all businesses halted due to the pandemic, and partly because the government lowers the tax,” U Min Htut, Director General of the Internal Revenue Department, said.
On June 12, the president of Myanmar signed the ordinance to provide a non-refundable credit tax credit for salary increment, new employment, or purchase of new equipment to stimulate businesses.
In the Economic Relief Plan issued on April 28, the government planned to provide tax/fees deferral or waiver and tax credits.
Daw Aung San Suu Kyi, the state counselor of Myanmar, emphasized that the significance of COVID-19 induced tax revenue shortfalls cannot be downplayed, with anticipated revenue underperformance requiring reallocations of government spending to create space for COVID-19-related outlays, and policies.
“However, such reallocations shall not come at the expense of hard-fought-for fundamental social and economic freedoms now enjoyed in Myanmar. Nor shall our nation’s economic response involves cutting down our social services or increasing taxes on labor and investment,” she added.
The country is in a budget deficit for years. President U Win Myint at the meeting of the National Finance Commission, which he chaired, forecasted that the 2019-2020 fiscal year’s budget deficit to be as high as K7 trillion as the government prepares to spend more to fulfill more of the urgent needs.
With the lower revenue, the country’s budget deficit is set to get even higher.
(Myanmar Business Today: https://mmbiztoday.com/revenue-drops-by-k1-2-billion-due-to-the-covid-19-pandemic/ )