Delay your earnings from expensive construction contracts with private companies

Delay your earnings from expensive construction contracts with private companies

The Yangon Region Auditor General's report says that revenue is lagging behind the new market prices, which have been implemented by private companies in 2014 and 2016. 

These markets are located in Insein Township. Vegetable and flower wholesale markets; Yadanar Market in Tamwe Township and Thiri Yadanar Wholesale Market in South Okkalapa Township. Nyaung Kone Fruit Fruit Shop in Insein Township; Vegetable and paddy wholesaler is the government and Myanmar Agro Exchange Public Ltd. The project is a long-term partnership with a total of 83 acres of land. 

The contracting firm was appointed by Dagon International Limited as a contractor, and according to the contract, it was due to be completed by mid-2018 but was not renewed. Under the new contract, the main market and Shop House buildings will be completed within 18 months and the rest of the buildings within 30 months and pay a fine of 100,000 kyats per day. 

The profits from the Yangon City Development Committee are to be paid by the Yangon City Development Committee, after which the company has to pay 25% of its annual profit before the annual tax return and transfer 40% of the Shop House 20%. The rest will also receive 25% of the net profit from 160% of Shop House rent, which is 80%. 

However, only eight out of the 40 available Shop House have so far, and the proceeds are only paid up to 228 days after the contract period. The contract did not include late fines, so it was impossible to collect. In the calculation of profit, the Auditor-General of the Yangon suggests that the department should be allowed to manage the profit calculation as the company has been approved on the annual accounts of the accountants appointed by the company.

YCDC and Aung Kaung Kyaw Company have completed the full-scale rehabilitation of the market in Tamwe Township, with 50.06% and 49.94% company share. 

The upgrade was approved by the former government in 2014 and the contract was completed in mid-2017 but was not completed until the end of the year. 

However, the construction work has not yet been fully completed yet, with ongoing fines of Kyat 100,000 per day and continuing. 

Similarly, YCDC and Gamone Pwint jointly cooperated on the Yadana Thiri wholesale market in South Okkalapa Township at 50.74% and 49.26%. The construction of the new market was started in 2016 and the completion date is February 2018, but it is not yet complete, so we are paying late fees at K 100,000 per day. 

According to the contract, the department at the market planned to sell 55 Shop Shop stores for K 80 million to the winning bidder. The accountant reported that he had to pay Kyat 240,000 as a commercial tax on the sale, but there was no payment. 

According to the above, the Yangon City Development Committee; The Department of Commerce, with the Department of Commerce in the private sector, has not completed the due process, and the department has received lower taxes and lost revenue due to late tax payments. 

The Auditor General's report recommends a five percent commercial tax on late installments and the sale of shops. 

Of the rents paid by the Yangon City Development Committee, the commission must collect 5% commercial tax from the tenant on an annual rental income of 500,000 kyats.

For example, the Yadana Thiri Market in Yangon Region. Bayintnaung Market; According to the Auditor General's report, parking fees are between Kyat 600 million and Kyat 1,800,000, but there is no commercial tax. 

The Auditor-General recommends that the commercial tax should be included as a 5% commercial lease to prevent such tax exemptions.

Credit to Myanmar Times

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