Taxes slapped on military-run businesses
Play
Myanmar will tax its military's financial operations at the same rate as other companies, ending decades of exemption, the nominally civilian government said yesterday.
“All citizens and businesses must pay tax on their income and commercial profit in every democratic country,” Finance and Revenues Minister Win Shein said.
The move ends more than two decades of tax exemption for Myanmar Economic Holdings Ltd, the military's main investment arm, and for other military-controlled firms, from the fiscal year starting April 1.
Myanmar was under military dictatorship from 1962 until general elections were held in November 2010, Since then, it has undertaken significant political and economic reforms since President Thein Sein took office in March 2011. Myanmar Economic Holdings, established in 1990, operates as an industrial conglomerate in a wide variety of sectors.
These include gem production, garment factories, timber, beverages, supermarkets, banking, hotels, tourism, transportation, construction, real estate, computers, telecommunications, electronics, and steel and cement industries.
“This is a positive step,” said Mg Mg Lay, vice president of the Union of Myanmar Federation of Chambers of Commerce and Industry. “We all have a duty to pay taxes for our country and military firms should be no exception.”
Myanmar, ranked among the world's least developed countries, has been advised by the international community to broaden its tax base.
On April 1, 2012, the Ministry of Finance and Revenue introduced a new system to collect more from high earners, while reducing the tax burden on low-income residents.
Some 70 per cent of the population paid no taxes in 2012,according to ministry data.
