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Mandalay to rethink wheel tax collection

The Mandalay City Development Committee (MCDC) has announced it will rework the collection of tolls and the wheel tax on vehicles without opening a new tender for the last six months of the 2018-2019 fiscal year.

Tolls are one of MCDC’s most lucrative sources of income. Revenue from toll gate collection exceeds K15 billion (US$10.95 million), prompting the committee to upgrade tax collection by building electronic toll gates, said U Ye Lwin, municipal minister of Mandalay Region.

“Under the supervision of MCDC, 27 companies have licenses to collect the wheel tax. If the collection of wheel tax is abolished, it will delay the city’s development, so we have no plan to abolish the wheel tax. We will reduce the numbers of gates at which the tax is collected by combining gates according to district or road section and building electronic toll gates that use a digital card system for more convenience,” he said.

In Mandalay city, the wheel tax varies according to vehicle – K500 is levied on vehicles that weigh over five tonnes, K300 on vehicles that weigh from three to five tonnes, K200 on vehicles that weigh from one to three tonnes, and K100 on those that weigh under one tonne.

“The collection doesn’t burden people. There are also rules for former tender winners to repair damaged roads around the gates,” said U Ye Lwin.

U Hlaing Win, Hluttaw MP of Sint Kine township constituency No. 2, asked about plans to abolish the tender of the wheel tax to businesses.

“The question to abolish Myitnge Htonebo tollgate still depends on the Hluttaw. Tollgates were abolished in Kayah State, Kachin State, Tanintharyi Region, Rakhine State and Sagaing Region. I would like the tollgates in Mandalay Region to be abolished too,” he said.

The tender from April to September 2018 was awarded for K2.56 billion, which was 32.4pc of the development committee’s total revenue of K7.92 billion.

Starting from the 2018-2019 fiscal year, the wheel tax will be levied in three categories; owned cars, rental cars and business cars, according to the vehicle’s engine power, he said.

Source: Myanmar Times

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