Myanmar Investment Commission has rejected the proposal to designate Chin State as the least developed region and grant 10-year tax exemption.

MIC Secretary Aung Naing Oo said the demand could not be met according to the Myanmar Investment Law.

During the 23rd meeting between Vice President Myint Swe and businesspeople held at the Union of Myanmar Federation of Chambers of Commerce and Industry, Kyaw Le Lyan, president of Chin State Chambers of Commerce and Industry, demanded the tax exemption period be increased from seven years to eight years by designating the state as the least developed region.

"In reality, we cannot grant such a privilege. Under the law, we have given a maximum of seven years to Chin State. Under the law, we can give three years, five years or a maximum of seven years. The period of seven years has been allowed for all townships of four states namely Chin, Kayah, Kayin and Rakhine. Kachin State is not included. If we want to give such permission, the law must be amended. But, Chin State enjoys many opportunities granted under other laws," said Aung Naing Oo, also director general of Directorate of Investment and Companies Administration.

During the meeting, Kyaw Le Lyan also stressed the need for the government to pay more money in purchasing electricity from Chin State for the investment of entrepreneurs due to high production cost despite a network of rivers and creeks to generate hydroelectricity.