The Internal Revenue Department (IRD) will start collecting data on unpaid government taxes to tackle Myanmar’s growing tax evasion problem after up to 400 industrial companies were reported avoiding local tariffs.
Mobile enforcement teams will monitor industrial zones including the South Okkalapa, Mingaladon, Thaketa, Shwe Pyi Thar, Hlaing Thayar and South Dagon townships, according to the IRD.
Internal Revenue Department Director U Aung Kyaw Tint said government action to target the country’s tax evasion in its industrial zones will follow the authorities’ inspection of business in these market areas.
“As there are many zones, we will collect data first and then notify the businesses to pay taxes,” U Aung Kyaw Tint told Myanmar Business Today.
The taxation board plans to hold negotiations with industrial committees, township city development councils and manufacturers on tax-evading businesses operating in industrial areas.
Chair of Hlaing Thayar Industrial Zone U Myat Thin Aung said manufacturers operating without industrial licenses in the country’s industrial zones could be driving Myanmar’s increased tax evasion.
“Some manufactures have to operate on rented facilities which increases production costs. That might be why the manufacturers evade taxes,” U Myat Thin Aung told Myanmar Business Today.
The government also plans to implement mobile enforcement teams to collect tax evasion data on areas including the Saw Bwargyi Gone market, Than market, Yuzna Plaza, Bayintnaung market, Bogyoke market and Theingyi market.
Chair of Dagon Port Industrial Zone U Aye Lwin said while he welcomes the governments plan to levy taxes more strictly throughout the country, authorities shouldn’t target struggling manufacturers following the country’s industrial laws.
“It is more beneficial to impose taxes on those who have been buying lands without using real estate names and those evading taxes by renting out land instead of operating businesses there themselves,” U Aye Lwin told Myanmar Business Today.
