YCDC issues stern warning to developers on unpaid tax

Pay your taxes – or we won’t certify that your building is complete, Yangon city officials are telling developers.

On completion of a building, Yangon City Development Committee (YCDC) issues a building completion certificate (BCC), which allows tenants to inhabit the property.

But some developers have been complaining of delays in issuing the certificates.

U Zaw Win, chief engineer of YCDC’s building department, told The Myanmar Times:

“Some developers are blaming the department for delays in the issuance of BCCs. But that’s not true. The main reason for delay is that some developers have failed to pay their tax to the revenue department. We won’t issue the BCC if the tax documentation is not complete,” he said.

According to YCDC rules, the developers are liable for taxes based on the construction cost of the buildings, a matter that has to be settled with the revenue department before they apply for the BCC. Some developers have applied for the certificate without paying the tax.

“We cannot issue the certificate unless the tax is paid. Once it is paid, we can issue the BCC within a day,” he said.

U Ko Ko Lay, director of Three Friends Construction, said the tax is based on the cost of all construction materials used in the building. “If the figures don’t add up, the revenue department will check, which causes delays and holds up the issuance of the BCC,” he said.

As well as tax avoidance, another reason for the delay in issuing the BCC is the failure to complete an adequate drainage system. YCDC announced last July that the certificate would be issued only if the drains are complete.

“There are a lot of rumors about the drainage system. Some developers say the drains have to be five feet deep and five feet wide for each drain in front of the building, but that’s not true. There is no specific size. But the drains do have to be adequate for the type of building and the type of ground,” said the chief engineer.

The drainage system was the most important part of the infrastructure from the point of view of public health, he added, since poor drainage could speed the spread of disease.

Source: Myanmar Times

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