Tax increase at SPDC checkpoint on Zami River, financial burden for travelers and merchants

June 25, 2010

Kawkareik District: Passengers and merchants traveling along the Zami River have told HURFOM’s field reporter that soldiers from Burmese army Light Infantry Battalion (LIB) No. 403, are arbitrarily increasing travel taxes at their checkpoint along the eastern bank of the Zami river at Phaya Ngote Toe village, Three Pagoda Pass (TPP). Travelers report the additional tax is damaging financial burden, as travel along the river requires 70% of the travel cost to be spend on checkpoint taxes.

LIB No. 403 operates under Military Operations Management Command (MOMC) or “SaKaKha” No.8, as a support battalion away from the State Peace and Development Council’s (SPDC) front line conflicts. Its checkpoint at Phaya Gnote Toe can be reached directly by riverboat from TPP, which continues on to Kyarinnseikyi Township, Karen State.

Beginning in early June LIB No. 403 opened for the rainy season, when boats are able to travel the Zami River, with a “Region Pass tax” higher then previous years, according to locals who use the route, merchants from other regions, and passengers moving up and down the river.

In previous years the agreed on amount to charge riverboats was a maximum of 1,000 kyat per passenger at the other riverside checkpoints belonging to other Burmese battalions and those of the New Mon State Party (NMSP), the Karen National Liberation Army (KNLA), the Karen Peace Force (KPF), and Democratic Karen Buddhist Army (DKBA). Regarding this arbitrary increase in LIB No. 403’s travel tax, Ma Khin Myo (fake name),40, who travels to Kyarinnseikyi Township for business using this route, told HURFOM’s field reporter:

In previous years, they did not levy as much [of a tax] as this year. Each boat owner was paid a total of 30000 [kyat] to 31,000 [kyat] …[to cover] the combination of the boat’s fee and the check-point taxes. But, now, Burmese check-point does not accept the money from the boat and car owners. They count the number of passengers and levy tax of 2000 to 3000 kyat per head. I have to go to Three Pagodas Pass at least two times per year because of personal business. In the past, taxation problems were resolved by the boat’s crews or cars’ drivers. But this time, it is quite unfair. The Zami voyage will be widely used in coming rainy season. I don’t know how bad it will be at that time.

According to Nai Kon Aung (fake name), 45, a current NMSP member who works a regional military activities observer:

The Burmese army has a habit that they do as they please when they are on duty in the areas like this – the areas near the border and the areas totally controlled by them. I don’t mean all battalions [act like this]. Some army [units] have reached here [but]…they did not to cause any problems living here. So they had no bad image [of themselves] …When a commander with bad image (or bad history) reached here, it was very unstable. Now persons from LIB No. 403 levy high rates of taxation. Not only merchants but also passengers have to pay more than the fixed rate of taxation – 1,000 kyat. Merchants will be poor because they are charged depending on their commodities. On June 18, a merchant grumbled [to me] that he could not hope for profit [at] that time and he couldn’t even cover his traveling fee. If they are still continuing unfair taxation, other groups can’t stand.

Nai Kon Aung highlighted to HURFOM’s researcher that in this black area there is no real protection by tax laws, fixed tax rates, trade laws or other laws, and that when passengers reach LIB No. 403’ check-point, they end up having to follow the checkpoints own standards or laws.

The Zami river route is used widely by merchants and locals to import cooking oil containers from Thailand (in large iron cans) or in bags (oil in plastic bags), ready made foods such as canned foods, juices, and different brands of dried noodles.

Apart from affecting the capacity of traveler’s ability to reach their destinations, it is highly likely that even at this one checkpoint the arbitrary increases in taxation will affect rainy season imports along the river. As noted by Nai Kon Aung, there are no legally binding tax laws, other then the previously agreed upon amount of 1000 kyat per checkpoint. If arbitrary tax increases such as at the Phaya Ngote Toe checkpoint, there is potential for other battalions to also increase their taxation, undermining the agreed on the previously uniform tax of 1000 kyat and placing even more financial pressure on passengers and merchants.