Three Pagoda Pass Township businesses falter under second annual tax

November 13, 2009

HURFOM, TPP: On November 9th, Chairman of the Township Peace and Development Council (TPDC) in Three Pagodas Pass (TPP), U Myo Kyi, held a meeting with members of the Village Peace and Development Council (VPDC) and local business owners about a new tax to be collected that would affect all local businesses. The order to collect this new tax comes from the Customs Department of Burma, based in the new Burmese capitol of Naypyidaw, according to a source who attended the meeting.

The meeting took place at the TPDC office in TPP town, and was attended by over 30 residents. Most of attendees are businesspersons, furniture factory owners and rental house owners.

At the meeting the TPDC chairman explained that members of the VPDC would come to collect taxes from every kind of business and factory, including rental homes, roadside tea shops and snack shops, drug stores, betel nut shops and furniture factories. Each would have to pay a tax of 15% of their annual income. Members of the VPDC will assess the standard of living of the business owner, who will then be expected to pay 15% of what that VPDC member estimates the business owner’s annual income to be.

Previously business owners of TPP only had to pay the community Development Committee (called Sibin Thayar Yay in Burmese) monthly and annual taxes. Smaller shops, such as betel nut shops, were taxed 50 baht a month and 1,500 baht for an annual tax.  Larger businesses such as big shops and factories, depending on their size, must pay 1,000 to 3,000 baht a month and 5,000 to 15,000 baht for the annual fee, according to HURFOM field reporters.

However now, the new Burmese Customs Department annual income tax will be collected in addition to the traditional business tax collected by the Development Committee.  According to sources the Development Committee taxes will be the same amount as in the past.

Some business owners have reported that they have already had to pay the tax to the Customs Department, the collection of which was put in to effect the day after the meeting.  Some of these business owners describe having forced to the pay the Customs Department annual income tax for 2008 and 2009, while others have only paid a back tax for 2008.  Other business owners have yet to be visited by members of the VPDC.

“I have had to borrow money with a high interest rate from other people because all my money I have owned is spent for paying my employees, and any amount they [VPDC] guess at is just a number,” said a furniture factory owner who did not want to give his name. “Everyone is in the same boat as me.”

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