The Yangon Price Valuation Board of the Internal Revenue Department under the Ministry of Planning and Finance released a new price rate for property, 10 percent lower than last year.
This year’s price valuation establishes property to cost K500,000 per square foot, down from K550,000 the previous fiscal year.
The Price Valuation Board sets the country’s property rates by region as an effort to counterbalance economic shocks or downturns.
The Ministry’s property rates are directly connected to the property tax rate, 15 percent for a K1 to K300 lakh property purchase, 20 percent for K301 lakh to K1,000 lakh, and 30 percent for every property purchase over K1,001 lakh.
“The property prices was lower in an effort to boost consumer investment and the collection of property taxes. The board updates the property value annually to reflect the activity of the real estate market as well as regional and national economies,” U Min Htut, Director General of the Internal Revenue Department, said.
By reducing the price of property, the Ministry is trying to attract investment in the real estate sector while generating more tax revenue, part of a concerted effort to help the market rebound and limit chronic tax avoidance.
Per stipulations of the Union Tax Law, the Price Valuation Board must still seek approval from regional and Union governments before the final property rate comes into effect.
Although the Union Tax Law specifies updates in property rates to coincide with the start of the fiscal year, this year it’s happening in August.
Source: Myanmar Business Today
