A draft bill to prevent real estate monopolies and increase government tax revenue is being submitted to the Attorney General’s office, according to Deputy Planning and Finance Minister U Maung Maung Win.
The draft law aiming at supervising property taxation has been submitted to the union attorney general for the Union government to then submit it to Pyidaungsu Hluttaw, he said on October 30 in Pyithu Hluttaw.
The bill frames the levying of a nationwide property tax, which has not yet been enacted to this day. So far, property taxes are levied by municipal organisations under regional or state government.
This fragmented taxation favours real estate monopolies, which deter foreign investment and infringes on individual rights, said Pyithu Hluttaw MP U Tin Ko Ko Oo of Mon State’s Belin township.
“Monopolies on real estate are an obstacle to foreign investment. Acquisition and speculation by wealthy citizens also impacts less well off citizens who have a hard time to find a place to live. Therefore, it is necessary to prevent mass acquisitions and speculations on the housing market,” he said.
Henceforth, the draft bill aims at raising the government’s tax revenues, collecting property taxes on a systematic basis, improving municipal organisation’s revenue from property tax and ensuring fair housing prices, said U Maung Maung Win.
If the law is enacted, a central supervisory team, setting annual land and property rental rates will be created.
“The increase of land prices is one of the factors. The most important is to have stable governmental policies. No foreigner would invest if policies are not stable,” said U Nay Soe, a Nay Pyi Taw-based businessman.
U Khin Cho, Pyithu Hluttaw MP from Hlaingbwe township, and a member of Pyithu Hluttaw public account committee added, “Some people build residential buildings and rent out to others. This law also relates to the Companies Act. But it is too early to talk about it as the bill has yet to be enacted.”
To enact the law, nine meetings are needed between Pyidaungsu Hluttaw Commission for the Assessment of Legal Affairs and Special Issues and concerned ministries.
Under the NLD-led government, prices of main export goods – such as oil and natural gas – have fallen. Yield of agricultural products also decreased due to natural disasters. To remedy to the situation, the government has sought to increase income through taxes.
“This is a short-term project to earn more income and to make sure that all commercial taxes are collected. We are working on initial programs to develop a Value Added Tax (VAT) system with the help of modern IT techniques on the long-term,” said U Maung Maung Win.
Source: Myanmar Times
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