Telecom Tax Delayed Until New Gov’t

Finance minister U Win Shein has presented to a union parliamentary meeting a plan to collect commercial tax on every mobile phone top-up credit starting from April 1 when the new government starts their term.

The commercial tax on mobile phone users was planned to start in the current government’s term but members of the parliament have agreed to postpone this plan for one year after a public outcry.

“Currently, our country’s tax income only accounts for one tenth of one percent of GDP. Myanmar has very low tax revenue compared to other countries. Collection of these taxes is necessary for the upcoming government to operate well,” said U Phone Myint Aung, a member of the Upper House of the parliament.

The commercial tax provision is included in the 2016 tax law and this law will be confirmed in the ongoing session of parliament. The 2016 tax law will be enacted on April 1, U Phone Myint Aung added.

“The sale of top-up cards may be less if the commercial tax is collected,” said Daw Nwet Nwet Win, top-up card seller from South Dagon township.

The 2016 tax law aims to collect K80 billion from commercial tax on mobile top-ups.

In this 2016 tax law, it is estimated to collect K 6.2 trillion from 19 kinds of tax from 11 different departments and the estimated amount is K269.95 billion more than the 2015-16 fiscal year, U Win Shein said.

Source: Myanmar Business Today

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