by May Oo
YANGON, Oct. 13 (Xinhua) -- The new Myanmar Investment Law will take effect in three months which will promote export-oriented investments.
"But we are ready to announce the country's investment policy in a few days," U Aung Naing Oo, Director General of Directorate of Investment and Company Administration (DICA) and Secretary of the Myanmar Investment Commission (MIC), told Xinhua Thursday.
The House of Nationalities (Upper House) approved the bill earlier this month after it was passed by the House of Representatives (Lower House) last month.
The new law, which combines the Foreign Investment Law drafted in 2012 and Citizens' Investment Law, was drafted in 2013 based on wide-spread suggestions from experts and businessmen.
Unlike the previous law, the new investment law stipulates that tax breaks are only enjoyed by those who invest after the new law comes into effect.
Under the new law, tax privileges of the existing investment will remain only for those which export their products abroad, said U Aung Naing Oo.
In the past, any investment approved by MIC was favored by income-tax exemption for five years. Now it is only offered for such sectors as labor intensive manufacturing, agro-based business, infrastructure projects, logistics, hotel and tourism.
They will receive income-tax exemption for seven years if they operates in the least developed regions and states included in the country's promoted areas.
The export-oriented businesses will also be exempted of custom duty when they import raw materials.
The investment policy, mentioned by State Counselor Aung San Suu Kyi while announcing the country's thin economic policy paper in late July, will include the detailed points for the country's strategically promoted sectors and areas to lure foreign investments.
Another distinct point of the new law is that the MIC will prioritize for approval those which are related with government's strategy, capital intensive investments, which have huge impact on environment, which use state-owned buildings, among others.
Domestic investments as well as foreign direct investments both enjoy the privileges.
According to MIC, Myanmar drew 662.835 million U.S. dollars of foreign direct investment in the first half of the fiscal year 2016-2017, against the targeted amount of 6 billion U.S. dollars.
The amount was also lower than that of the same period of the previous fiscal year 2015-2016.
Myanmar drew 9.5 billion U.S. dollars foreign investment in the fiscal year 2015-2016.
With the help of Asian Development Bank, Myanmar is also drafting the new Company Act, which is vital to the country's economy and to be submitted to the parliament in the near future, said U Aung Naing Oo.
The country also plans to sign Bilateral Investment Treaty with European Union, China's Hong Kong and other countries or regions in a bid to attract foreign direct investments, U Aung Naing Oo added.
