This is how to quell land tax evasion in Myanmar
MPs propose tweaks to the Union Revenue Bill.
The solution to widespread tax evasion on land purchases is the creation of a fairer, more even taxation system.
This was the prevailing opinion of MPs assembled in Nay Pyi Taw last week to deliberate the Union Revenue Bill prescribing three tax brackets for the purchase and construction of buildings and housing, Eleven Myanmar reported.
“Too much tax encourages people to evade tax,” Dr Aung Khin, an MP for Pyin-Oo-Lwin constituency, said.
“Only 5 percent of tax was collected for deals of values of up to MMK30 million (USD22,000) before.”
Ninety-percent of the real-estate sector in Mandalay avoided paying tax, Eleven reported, citing the MP for Chin State’s No-4 constituency.
The bill proposes a 15 percent tax on land deals worth MMK1 to MMK30 million; 20 percent on deals worth up to MMK100 million; and 30 percent on deals worth more than MMK100 million.
The MPs pitched a tax of 5 percent for transactions valued at up to MMK100 million, 10 percent for those up to MMK200 million, 15 per cent for those up to MMK300 million, 20 percent for those up to MMK400 million, 25 percent for up to MMK500 million and 30 percent for above MMK500 million.
“30-million kyat is not much today since it isn’t enough to buy land in Yangon and Mandalay,” Aung Khin declared.
Ei Ei Pyone, an MP for Ayeyawady region, highlighted the plight of buyers at the bottom of the housing ladder. “If they have to pay tax of 15 or 20 per cent for that house, it would be burden for them,” he said, noting that the government has to “support development of the people.”