Myanmar takes steps to develop special economic zones
Friday, 4 March 2011
YANGON, Mar 3 (Xinhua) : Myanmar has formed a 19- member Special Economic Zone (SEZ) Implementation Committee to lay down programs for the development of SEZ as a follow-up of the promulgation of its SEZ law.
The SEZ implementation committee, headed by the Minister of National Planning and Economic Development, will scrutinize the proposals of respective government departments with regard to the SEZ to be submitted to the government cabinet and play the role of administration of the SEZ.
Myanmar's ruling State Peace and Development Council (SPDC) enacted the SEZ law on Jan. 27. According to the law, the government is to establish SEZs by demarcating the land area to further develop the economic momentum of the state.
The SEZ includes high-tech industrial zones, information and telecommunication technology zones, export processing zones, port area zones, logistics and transportation zones, scientific and technological research and development zone.
The 12-chapter law as a legal base covers formation of central body, special privileges of investor, land use, bank and finance management and insurance business as well as quarantine inspection and confinement and matters related to labor.
The enactment of the new special economic zone law came 23 years after Myanmar promulgated its first foreign investment law in November 1988.
The details on the SEZ Law have been made public in the form of edition drawing much concern of foreign investors investing or intending to invest in the country's special economic zones.
The law states that the investor shall sell the goods produced in the special economic zone to the international market and use the imported materials for own production only and not sell them in local market.
The law grants income tax exemption on the proceeds of overseas sale for the first five years, 50 percent relief on the income tax rate for the second five years and 50 percent relief on the income tax rate for the third five years if the profit obtained from export sale is re-invested.