Yangon Internal Revenue Dept. Sets 10 Percent Lower Property Price

The Yangon Price Valuation Board of the Internal Rev­enue Department under the Ministry of Planning and Finance released a new price rate for proper­ty, 10 percent lower than last year.

This year’s price valu­ation establishes prop­erty to cost K500,000 per square foot, down from K550,000 the previous fiscal year.

The Price Valuation Board sets the country’s property rates by region as an effort to counterbal­ance economic shocks or downturns.

The Ministry’s property rates are directly con­nected to the property tax rate, 15 percent for a K1 to K300 lakh property purchase, 20 percent for K301 lakh to K1,000 lakh, and 30 percent for every property purchase over K1,001 lakh.

“The property prices was lower in an effort to boost consumer investment and the collection of property taxes. The board updates the property value annu­ally to reflect the activity of the real estate market as well as regional and na­tional economies,” U Min Htut, Director General of the Internal Revenue De­partment, said.

By reducing the price of property, the Ministry is trying to attract invest­ment in the real estate sector while generating more tax revenue, part of a concerted effort to help the market rebound and limit chronic tax avoid­ance.

Per stipulations of the Union Tax Law, the Price Valuation Board must still seek approval from regional and Union gov­ernments before the final property rate comes into effect.

Although the Union Tax Law specifies updates in property rates to coincide with the start of the fiscal year, this year it’s hap­pening in August.

 

Source: Myan­mar Business Today

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