State-owned Myanmar Timber Enterprise (MTE) is targeting sales of 5,000 tonnes of teak and 100,000 tonnes of hard wood during the six-month period between April and October this year. The sales are expected to generate K63 billion in revenues, MTE deputy general manager U Khin Maung Kyi told The Myanmar Times.

Sales will be conducted both locally and internationally to cover MTE’s commitments to the government, which includes 20 percent of its revenues as well as taxes of 25 pc. “Our department has to provide about K 15 billion. Then 25pc tax is about K 19 billion,” said U Khin Maung Kyi.

“We also have to cover costs like salaries and other operational expenditure,” he added. In total, MTE’s costs have been estimated at around K86 billion. 

In Myanmar, state-owned enterprises (SOEs) must pay 20pc of their revenues to the State and a 25pc tax on net income has to be paid to the State, too, said Daw Nwe Nwe Win, Director General from Budget Department.

In 2017-18, MTE generated income of over K 100 billion from domestic sales and about $115 million from foreign sales, he said.

For profit model

As MTE is among the SOEs that make the most revenue for the nation; discussions are underway for the organisation to operate under a commercial model instead. “Preparations are being carried out to restructure MTE and a law will also be drafted,” said U Khin Maung Kyi.

One company which was successfully restructured from SOE to a for-profit model and garnered success is the Myanmar National Airway (MNA). “We’re expecting to go the MNA way. But, in order to do this, a law must be promulgated. A law related to MTE has to be drafted,” he said.

After the ministry approves of the departmental restructure, a law will be drafted and later submitted to parliament approval.

There are plans to decrease forestry production, growing own forest plantations; there are also plans to switch and reorganise the state-owned Myanmar Timber Enterprise into the Myanmar Forestry Enterprise, said Union Minister of the Ministry of Natural Resources and Environmental Conservation, U Ohn Win, told state media in April.

Source From: Myanmar Times