Government expects tax revenue growth despite evasion challenges in real estate
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NP News - Sep 25
The State Administration Council (SAC) aims to increase tax revenue by over 9,300 billion kyats in the upcoming 2024-2025 fiscal year, according to the Ministry of Planning and Finance (MOPF).
It is reported that the government's tax revenue target has increased from 8,052 billion kyats in the previous FY to over 9,378 billion kyats in the current FY.
The government plans to collect over 4,702 billion kyats this year, primarily through excise duties, commercial taxes, license fees, motor vehicle taxes, driver's license fees, business license fees, office taxes, stamp duties, and special goods taxes.
Although tax can be levied in various sectors, tax cannot be fully received in the real estate sector. “In other sectors, tax collection has become stricter lately. However, in real estate transactions, the taxes that should be collected are often not fully received. For instance, when purchasing a plot of land, taxes are calculated based on the assessed value," said a business owner to The NP News.
Similarly, tax evasion incidents have also been reported in automobile sectors, he added.
In addition to other tax categories, the SAC aims to collect over 3,437 billion kyats in income tax during the current FY, as announced by the MOPF.
In addition to the above-mentioned taxes, the government anticipates collecting over 460 billion kyats from customs duties and over 760 billion kyats from taxes on the extraction and use of state-owned natural resources.
"There are weaknesses in tax collection across the board. Even small neighborhood shops, convenience stores, and tea shops need to be systematically taxed. There are also cases of illegal transactions happening under the radar. There is much room for improvement. In reality, all taxes should be fully collected. The government also needs to provide reliable public services, such as road construction, bridge building, and electricity. These services are funded by taxes, so if they are improved, the situation will eventually be resolved. In such cases, people will be more willing to pay taxes. The government should ensure fair and meaningful services in return for the taxes paid," added the business owner.