TPDC arbitrary tax demands in Mudon Township balloon

September 9, 2009

HURFOM, Mudon Township: During the 1st week of July, the Township Peace and Development Council (TPDC) issued a command that the General Administration Department would collect a new “tax” in teashops, karaoke bars, music entertainment shops and restaurants where TV’s and audio systems are widely used. The tax is currently being collected in Mudon town and other 30 villages throughout Mudon Township, Mon State.

HURFOM field reporters have found that every shop located around the municipally controlled area, in both town and rural communities, have to pay this new TV/Audio tax. The TPDC chairman U Kyaw Maung and his secretary U Thein Zaw implemented the new TV/Audio tax collection through the General Administration Department (GAD) of Mudon Township, which has been collecting the tax throughout its municipal areas.

The new extorted TV/Audio tax targets shops that own a TV or audio system. Is divided into two categories, with two costs, based on location of the shop. One tax bracket for town based shops and one for the rural outlying areas. The shops locating in the towns have to pay 10,000 kyat for owning a TV with a CD/DVD player and speakers. In the rural areas owners have to pay 50,000 kyat for owning a TV with a CD/DVD player and speakers, or 10,000 kyat for an audio system. Shops that own both have to pay 50,000 kyat total.

“Having worked in a Teashop for ten years I have never paid this amount of money [10,000 kyat] before, “said one of Teashop owner in the town. “When they collect the annual taxes, we do not get a tax receipt from them.”

Some owners have complained to HURFOM field reporters that the estimated municipal tax for previous years has been only 1,000 kyat per year. In the past the municipal tax would cover all aspects of running a business. However, in addition to the municipal tax, this extorted TV/Audio tax specifically targets businesses that own entertainment systems.

This new tax stands apart form not only the regular municipal taxes, but also the yearly tax for entertainment business owners, who have had to pay an “entertainment licenses tax”.

“The State law pretends to only collect about 1,000 kyat for those taxes,” One of a member of the TPDC in town said. “Now, they [TPDC/GAD] have collected 10,000 kyat. It appears that they just take advantage of the residents to benefit themselves.”

“They collected 50,000 kyat if we had a television and CD player in our shop,” said one Kamawet villager who owns a restaurant. “If we didn’t, we had to pay only 10,000 kyat [for our CD player]. We didn’t get a receipt for the tax.”

Entertainment based business were not the only ones to suffer financially from this new wave of tax extortion. On top of the other taxes, restaurant owners are forced to make “donations” to numerous causes and benefits.

“The authorities colleted the money not only for the municipal taxes. They also forced people owning a restaurant to donate money to set up a football match, develop a new road, and to the VIP travel cost budget,” A Mudon resident family restaurant owner explained. “The authorities don’t give any clear justification or evidence to prove whenever they collect the money. But, they are huge consequences for the people surviving and living by these kind of jobs.”

Restaurant owners are unable to refuse making these arbitrary donations. If they refuse the TPDC will not renew their restaurant license and will apply additional restrictions.

HURFOM reporters have documented that restaurant owners have been forcing to pay 5,000 to 15,000 kyat each month by authorities for these additional arbitrary donations. These arbitrary forced donations include VIP travel costs, Women and children welfare fund raising, Fireman fund, and TPDC Municipal costs. Often these groups that supposedly receive extorted donation money already are allocated money in the municipal budget.

Written by HURFOM · Filed Under News