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Withholding tax holds back gold exports

Withholding tax holds back gold exports

January 8, 2019


Despite permission to export Myanmar produced gold and gold jewellery, local traders have not taken advantage of the opportunity due to the withholding taxes involved, insiders said.Traders are expected to pay a withholding tax of 2 percent on the amount of gold they wish to export.“At that level of taxes, it is no longer attractive for us to export gold. Moreover, the government has already collected commercial taxes from the gold companies,” said U Ye Thu Aung, director of Myanmar Gold Development Public Company and executive member of Myanmar Gold Entrepreneur Association (MGEA). “So far, gold has not been exported yet. We are now coordinating with the private sector to set a fair and sustainable tax rate,” said U Min Min Oo, permanent secretary of the Ministry of Natural Resources and Environmental Conservation (MONREC). On January 22, 2018, the government allowed international trading of gold and gold jewellery and accessories. Nine months later, in September, it launched a one stop service centre to facilitate the import and export of gold in Yangon.Domestic gold prices this month reached a record high of over K1 million per tical, buoyed by rising global gold prices and a higher dollar-to-kyat exchange rate. A tical is equivalent to 16.6 grams.