Sky Net TV contract should be revised: parliament speaker

Sky Net TV contract should be revised: parliament speaker

Published on Sunday, 25 May 2014 20:50

Union parliament speaker ThuraShwe Mann has called for the revision of the government contract awarded to Sky Net Television, operated by ShweThanLwin Media.

ThuraShwe Mann was speaking at Yezin Agricultural University when a student in the audience raised a question about the unfair contract.

"I could not sleep well after reading Daily Eleven report about the contract between Sky Net and the Information Ministry. The benefits for the state are very few. The government will not enjoy 25 percent as per a regular contract until we saw about six presidential terms," said student Naing Win Lwin posing the question.

"The operator is granted a three-year tax exemption. Meanwhile, civil servants are paying their taxes. Their living standards are as low as those of grass roots people in our neighbouring countries. Our country has no middle class. But the citizens pay their taxes."

Naing Win Lwin asked how the speaker and MPs would address the issue to satisfy the public.

He also raised the issue in which the state would enjoy 25 per cent only after the time lapse of six presidential terms (30 years). But in contrast, the government now enjoys 25 per cent as soon as it signed a contract with Forever Media Group, he said.

In his reply, ThuraShwe Mann said he was just aware of the matter when it had been revealed. He promised that the matter would be dealt with.

"Such a question should be raised. It is interesting to know that Forever Group pays 25 percent of revenue while Sky Net is to pay after 30 years. Such issue has emerged in the period of transparency. So I would like to say that we will apply measures step by step to address the issue."

Under the 33-year contract, Sky Net is granted a three-year tax exemption. It is entitled to 96 per cent of the revenues and only 4 per cent will be given to the government.

The agreement states for the first five years after the company starts paying income tax, the profit sharing ratio is set at 96:4 per cent. The government's share will rise to 8 per cent in the second five-year term. Its share will be 12 per cent in the third five-year term, 16 per cent in the fourth five-year term, 20 per cent in the fifth term and 25 per cent in the sixth term.

Broadcasting media's advertising income ranges between Ks 30 million and Ks 60 million a day and the advertising charge per minute varies between Ks 500,000 and Ks 1.1 million.

ShweThanLwin Media is not on the list of Myanmar's top 500 tax payers, according to data released last year.

http://www.information.myanmaronlinecentre.com/sky-net-tv-contract-should-be-revised-parliament-speaker/