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July 05, 2020

Restaurant owners fined for failure to affix tax stamps

The Department of Internal Revenue in Yangon took action against 520 restaurant owners who failed to use tax stamps issued by the government and fined Ks133 million during the 2016-2017 fiscal year, according to U Myint Thaung, Yangon Region Cabinet’s Minister for Planning and Finance.
“There are some restaurants which did not give bills, some which failed to put tax stamps on bills and some who put an incomplete set of tax stamps on bill that were found in the Yangon Region that caused losses while collecting tax,” said U Myint Thaung.
Restaurant owners had been called for a meeting at the township internal revenue offices in the Yangon Region and  asked to issue bills on which tax stamps are to be placed. There were notice letters for customers on every restaurant’s wall that all the customers need to ask for the bill with tax stamps when they pay the money to the restaurants.
During the 2016-2017 fiscal year, the revenue from tax stamp sales in the Yangon Region reached more than Ks11 billion, according to the minister for Planning and Finance. The number of restaurants which were ordered to use tax stamps on their vouchers were 1,508 in 2015- 2016, which increased to 1,265 restaurants in the 2016- 2017 fiscal year.
“As there has been the situation of losing revenue with collecting tax in the Yangon Region, action will be taken so nothing will be wasted concerning the tax stamps in respective townships during the 2017-2018 fiscal year,” said Region Minister U Myint Thaung.
The stamp tax and commercial tax for the restaurants came out of the second meeting of the Yangon Region Hluttaw held on 24 April, when U Kyaw Kyaw Htun, representative for No. 1 constituency in Hlaing township, asked how many restaurants in Yangon Region bought tax stamps and how much commercial tax was being collected in a month. U Kyaw Kyaw Htun also asked for action against those restaurants which did not properly use the tax stamps.
In the Yangon Region, on the bill issued by the restaurants which pay commercial tax, the Internal Revenue Department said  customers have to pay a 5 per cent tax.
According to the union tax law issued in 2015, The Department of Internal Revenue announced that the first-time fine for restaurant owners who fail to put stamps on a voucher would be Ks2 lakh. The fine for the second offense would be Ks5 lakh, the third time Ks7 lakh and the fourth time Ks10 lakh. Persons who complain to the department about a non-compliant restaurant will get 10 per cent of its fine as a prize.

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