Thursday, 22 May 2014

Myanmar collects Ks 100 billion in property sale tax

The government has received about Ks 100 billion per year in tax revenue from real estate sales, according to Ministry of Finance and Revenue.

"The government imposes revenue and income taxes on real estate sales. Annual tax revenue from them is around Ks 100 billion," said Myo Htut, director general of Internal Revenue Department.

The union government is working together with regional and state governments to collect more real estate taxes as the revenue was still low.

"We are not sure what the sale prices are exactly. The sales are being done according to "localized" agreements. Now the government is to scrutinize the sales by a combined cooperation of government departments from bottom to higher levels," said Myo Htut.

Tax laws are to be amended annually, according to officials from the department.

Real estate and rent business in Yangon is mainly controlled by a small group of people who have increasingly raised the prices and rent yearly, imposing a burden for tenants and new buyers.

The government's projected losses in property tax collection are reportedly huge as the property taxpayers are relatively low.

source: Eleven Myanmar
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