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September 21, 2018

Union Taxation Law and Myanmar’s economic prospect

By May Nwe Aye

Persons, groups and businesses are responsible to contribute taxes for the support of a government so that the government should get involved in nation-building tasks and developments. Taxes due must be collected as required. On 7th day meeting of the seventh session of the second Pyidaungsu Hluttaw, Deputy Minister for Planning and Finance submitted Union Taxation Bill to the Pyidaungsu Hluttaw on behalf of the Union Ministry. The findings in the Bill and the report by the Pyidaungsu Hluttaw Joint-Bill committee were read out during the session of the Pyidaungsu Hluttaw on 28 February, 2018. Those who wanted to discuss about the Union Taxation Bill were advised to send their names and their constituencies for registration not later than 6 March, 2018.
The Union Taxation Bill presented to the Pyidaungsu Hluttaw and the report of the Pyidaungsu Hluttaw Joint Bill Committee will be discussed extensively by the Hluttaw representatives and the Tax Law would be enacted by the Pyidaungsu Hluttaw later. After the enactment of the Taxation Law, it would create a wide range of opportunities to collect taxes from those who evaded taxes on their properties and businesses. Under these circumstances, the Pyiduangsu Hluttaw Joint Bill Committee has already submitted a final report to the Pyidaungsu Hluttaw. The Hluttaw representatives would discuss the pros and the cons of the Pyiduangsu Hluttaw Joint Bill Committee and the report submitted by the coordination committee. According to suggestions of the Taxation Law coordination committee, 3% should be imposed on those for their failure or reduction of incomes during the period of the first six months, 5% for the second six months. First of all, taxpayers are advised to keep their money in the bank as the first priority. In the same way, 5% should be imposed on the money and stock shares for the first six months, 7% for the second six-month period. Therefore the taxpayers should keep their money in the bank as the first priority.
Secondly, taxes should be levied by the government on the money in the bank according to the Taxation Law. In order to let the taxpayers know clearly the procedures should be included in the Taxation Law.
Prescriptions should also be included in the law to prevent illegal individuals, groups and businesses from committing tax evasion.
Imposing taxes on land, buildings and their immovable properties, gold and other valuables, vehicles and movable things, tangible or intangible, should be included in the law for taxation. According to the Pyiduangsu Hluttaw Joint Bill Committee income tax per cent on properties should be 7% for the first six months, 10% for the second six months.
The taxpayers should know clearly about trading on movable and immovable properties, thereby inclusion of prescriptions in the Law to be abided by them. Trading on some properties could last for several months. These activities could evade all prescriptions and restrictions of the law. In the case of real estate, effective procedures should be established beforehand by the departments concerned. Upon a fixed-term basis, the price and date of the contract must be made. So, the taxes during the first six months could be less than those in the second. The taxpayers should be excused for quick implementation of the provisions of the contract during the prescribed period.
Increase in taxes can be visibly seen during this fiscal year. In addition, money from overseas banks out of various reasons can be put in our banks so that it can be used in financial market, investment and trading sectors. Investments create job opportunities and production and service sectors, thereby boosting to business and increasing taxes.
It is very important for the Pyidaungsu Hluttaw to enact the Taxation Law for taxpayers to be able to help in nation-building and development sectors. It is believed that the Pyidaungsu Hluttaw would enact the Taxation Law for the benefits and general development of our country. It is interesting how the Hluttaw representatives would discuss the Bill submitted by the Union Government or the report by the Pyidaungsu Hluttaw Joint Bill Committee. Whatever can it be either the Bill or the Report, the 2018 Taxation Law enacted by the Pyidaungsu Hluttaw would pave the way for Myanmar’s economic prospect.
(The opinions expressed in this article are those of the author, and do not reflect those of the GNLM.)

Translated by Arakan Sein

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