Impact Remedies: Covid-19 Fund Established With 100 Billon Kyats Capital

A COVID-19 Fund will be established at the Myanma Economic Bank with a capital of 100 billion kyats, composed of 50 billion kyats from the national Revolving Fund approved by the Union Government and 50 billion kyats from the Social Security Fund, according to the announcement of the Ministry of Planning, Finance and Industry on the steps to resolve the effects on the economy.

The announcement came following the working committee meeting to remedy economic repercussions caused by Coronavirus Disease 2019 (COVID-2019) on 18th March.

CMP businesses, hotels and tourism companies and small and medium enterprises (SMEs) will be categorized as priority sectors for remedial solutions, and the fund will be used to provide loans to those businesses owned by Myanmar nationals at an interest rate of 1 per cent and a loan period of 1 year.

The interest rate and loan period may be adjusted on the severity of the economic loss incurred.

Payment for the income tax for the second and third quarters for 2019-2020 fiscal year will be extended to 30 September.

Monthly payments for the commercial tax of 2019-2020 fiscal year that will begin 31 March to 31 August will be extended to 30 September. 

With approval from the Union Government, 2 percent of income tax levied in advance for export will be exempted until the end of the 2019-2020 fiscal year.