The Internal Revenue department (IRD) has entered into talks with breweries to install unit measuring devices to measure daily beer production in order to accurately assess taxes, an IRD official said.
“We are making plans with the local business community regarding launching the system this year. We haven’t invited tenders to handle the installation of the devices, but we have invited interested companies to propose solutions to this issue,” U Myo Min Zaw, deputy director of IRD, told Myanmar Business Today.
The measurement devices will enable the department to impose taxes accurately, he added.
The department plans to install the devices in breweries that produce Myanmar beer, Tiger beer, Mandalay beer and Dagon beer.
Breweries and distilleries are subject to 50 percent commercial tax based on their production capacity and a 5 percent sales tax when the products are sent to market.
“I don’t think we will face objection from the producers. If they are confident that they will pay the accurate amount of taxes, they can accept this measure,” said U Myo Min Zaw.
Breweries and Distilleries are required to order tax stamps to be put on their products every three months, and the exact revenue from tax stamps are calculated at the end of the fiscal year.
The IRD is also planning to use similar devices at shopping centres and private fuel stations to monitor the amount of sales.
