The Myanmar government has approved Ks 425 billion (US$ 438 million) to be used for three construction projects in Yangon, sources say.
(Burma Times) The projects will be implemented over three years, with half of the profits from each project to be shared with Yangon City Development Committee (YCDC).
Shwe Taung Junction City Development Co Ltd will invest Ks200 billion in the joint-venture project with YCDC at open-air Bogyoke Market in Yangon.
Meanwhile, Asia Myanmar Consortium Development Co Ltd will invest Ks125 billion in the construction of the Theinbyu Driving Practice Ground on Kandawgyi Road.
Crown Advanced Construction Co Ltd will set up a construction project worth Ks100 billion at the former location of Hanthawady Car Dealer’s Centre.
The total investment for the three companies is equal to one-fifth of the total income earned by the Internal Revenue Department during the fiscal year of 2012-13.
At Bogyoke Market, Shwe Taung Co will build a 32-storey hotel, a 28-storey office-tower, a 34-storey residential twin tower, and shopping malls. The first phase of the project will be completed in three years.
Profit sharing between Shwe Taung and YCDC will be set at a ratio of 48.37 percent to 51.63 percent. For the construction project at Hanthawady Car Dealer’s Centre, Crown Advanced will take 48 percent of the benefit while YCDC will take 52 percent. For the construction of Kanthayar Consortium Tower on Theinbyu Driving Practice Ground, Asia Myanmar Consortium and YCDC have agreed to share the profit equally.
A few months ago, Shwe Taung Co was given 8.84 acres from the 12.60-acre land of the old defence services academy complex near the Shwedagon Pagoda, in the heart of Yangon. Shwe Taung Co has planned to carry out a construction project there worth Ks100 billion. Hence, the company has planned to invest more than $300 million in the two projects.
Shwe Taung and other companies are investing a large sum of money in the construction of hotels and commercial buildings in Myanmar. Local people have raised the question of whether or not such investments are tax-paid.
A taxation supervisory board has already been formed to enforce tax regulation and to punish tax-dodgers in accordance with the law. Some legislators are calling for an investigation by an unbiased organisation to probe whether the companies pay taxes for such investments, and to ensure that these are beneficial to the country and the people.