The Internal Revenue Department will start scrutinising tax collection in 203 wards of 20 townships in municipal Yangon from the last week of this month, it said.
The move is aimed at uncovering tax evasions among businesses in industrial zones, as well as factories, warehouses, land and house rentals.
“We will invite entrepreneurs in 203 wards in 20 townships … to discuss tax collection in cooperation with township general administration departments,” a senior official from the department said. “Ward administration offices will collect lists of house owners, tenants and businesses,” the official said, adding that the tax-collection review in Yangon was just the first step.
According to the current rate, rental income is taxed at 25 per cent. Many plots of land in the industrial zones are in the hands of some speculators who rent them out and raise the fee yearly. Owners of flat and condo are doing the same.
Lists of homeowners and landowners will be checked against a list of taxpayers. “We will check to see who is paying tax on rental income in every township and ward,” the official said.
Condo units, flats, single houses, and land plots in and near industrial zones have been snapped up by a handful of people and they are said to have earned billions of kyats from rising rents. The government, however, is receiving far less tax than it should as only a small percentage of those who should be paying taxes are paying the amount they are legally required to.
Source: ELEVEN MYANMAR