Yangon tax rates and fines under scrutiny

According to the 2018 Yangon taxation law, the Yangon City Development Committee (YCDC) will cease its collection of taxes or fines for illegal use of public space starting from this fiscal year, U Myint Thaung, regional minister of planning and finance said at the Yangon Parliament last week.

In Yangon, because of space constraints, companies, shops, hotels and other businesses commonly place private property such as large power generators on public roads and platforms, which is deemed illegal. As such, the YCDC is accustomed to collecting taxes or fines for encroachment of public space.

That practice will now be discontinued.

‘’We will stop allowing private property such as generators to be placed on the road starting from this year and in the future. Accordingly, we will cancel the fines collected for such practices also,” said U Myint Thaung.

The announcement was made after nine MPs requested a review into the practice, saying it was an unfair one given that large hotel establishments and small businesses are expected to pay the same amount of taxes for encroachment.

Taxes and fines for other purposes are under review. One example is the tax collected for the use of signboards. “Some MPs have suggested reducing the signboard tax in the outskirt areas, but we think the rate is appropriate and will continue collecting at the existing rate,” said U Myint Thaung.

‘’The MPs also said that the tax rate for goods is a little high and ask if the government will reduce this. For this, we need the YCDC to conduct surveys. In the meantime, we will collect the taxes at the current rate,” he added.

The government will review taxes and charges collected for the use of sand, ports, clearing of rubbish from private hospitals as well as guest houses and hotels. If it is found that any hotels or guest houses are not registered with the YCDC, the government will take action.

Source : Myanmar Times

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