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Myanmar parliament suggests gradually raising taxes on undeclared income

The Pyidaungsu Hluttaw Joint Bill Committee has suggested reinstating tax rates on undeclared sources of income at a gradual pace in the new fiscal year.
“We suggest that the government amend the proposal to reinstate the 30 percent tax. It should instead adjust the tax brackets for undeclared sources of income so as to provide more support to micro, small and medium enterprises which have been affected by the COVID-19 pandemic,” committee member U Myat Nyana Soe
said on August 5.

“The tax rates should be amended in such a way as to still provide relief for middle-class people and low-income people,” he said.
This was in response to the government’s proposal last month to reinstate a 30pc tax on all such sources of income in the Union Taxation Law Bill for the new fiscal year.The tax brackets suggested by the committee are 6pc for unassessed income from K1 million to K100 million, 10pc for income from K101 million to K300 million, 20pc for income from K301 million to K3 billion and 30pc for income exceeding K3 billion.

The existing 2019 Union Tax Law provides that tax rates will be as low as 3pc for unassessed income up to K100 million, 5pc for income between K100 million to
K300 million, 10pc for income between K300 million to K1 billion, 15pc of income between K1 billion to K3 billion, and 30pc for income exceeding K3 billion.
Prior to the introduction of the 2019 Union Tax Law, unassessed sources of income were taxed between 15pc and 30pc.
The government had proposed reinstating the full 30pc tax rate on all unassessed sources of income during the new fiscal period. This was expected to boost
government coffers by up to K280 billion to around K2.8 trillion in fiscal 2020-21.
U Myat Nyana Soe had also suggested a more gradual increase of special commodity tax rates levied on cigarettes and alcohol during the coming fiscal year. –
Translated

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Source : Myanmar Times

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