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Press release issued to levy increased commercial tax rate over internet services

Although the majority of developing countries levy the sector-specific tax in addition to regular commercial tax for internet services, Myanmar does not collect the sector-specific tax till today. In order to recover the businesses, which face loss in impacts of COVID-19, the government carries out easing and postponing the tax collection.

However, as the use of internet services is on the rise across the nation, levying commercial tax over the consumption of internet services can increase the income for the State. On the other hand, the effects triggered by extreme use of internet services on the employment of the people and physical and mental sufferings of new generation students can be reduced.

The commercial tax will not be increased for calling and use of SMS. Arrangements will be made for easing the necessary restrictions for taxpayers who use the internet for the development of human resources and knowledge about health measures in levying the increased rate of commercial tax over the internet services. On one hand, efforts will be made for providing better quality service and network coverage for the users. The Union Tax Law 2021 was amended with a plan to levy the increased commercial tax.

Source: The Global New Light of Myanmar

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Union Tax Law 2021 (Amendment) enacted

Republic of the Union of Myanmar
State Administration Council
Law Amending the Union Tax Law 2021
State Administration Council Law No. 1/2022


5th Waxing of Pyatho 1383 ME
6 January 2022

The State Administration Council hereby promulgated this law under Section 419 of the Constitution of the Republic of the Union of Myanmar.

  1. This law shall be named “the Law Amending the Union Tax Law 2021”.
  2. This law shall be affected from 8 January 2022 to 31 March 2022.
  3. Sub-Section (e) of Section 14 of the Union Tax Law 2021 shall be substituted as follows:-
    “(e). Five per cent of commercial tax shall be levied over the income of other services being operated at home, except services mentioned in the Sub-Section (d) and Sub-Section (e-1).”
  4. The following section shall be inserted as Sub-Section (e-1), under Sub-Section (e) of Section 14 of the Union Tax Law 2021:-
    “(e-1) (1) No matter what provisions the Commercial Tax Law comprises, only once commercial tax shall be levied K20,000 per the sales of SIM cards and SIM card activation.”
    (2) Fifteen per cent of commercial tax shall be levied over the income
    earned from the internet services.”
  5. The table of Sub-Section (a) of Section 25 of the Union Tax Law 2021 shall be substituted as follows:-

I hereby signed it under Section 419 of the Constitution.


Sd/Min Aung Hlaing
Senior General
Chairman
State Administration Council

Source: The Global New Light of Myanmar

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Total border trade value decreases by US$966 mln this mini-budget period

The total border trade value at 18 border trade camps exceeded US$1.4 billion this mini-budget period, according to the Ministry of Commerce. During the mini-budget period, the total border trade amounted to 1.44 billion, down $966 million compared with the last year’s figure of $2.409 billion.

From 1 October to 24 December of the 2021-22FY, the country’s export via land borders amounted to $1.02 billion, while its import shared $427.7 million. Myawady topped the list of border checkpoints with the most trade value of $581.36 million, followed by Hteekhee with US$402.06 million.

The country conducts border trade with neighbouring China through Muse, Lweje, Kampaiti, Chinshwehaw and Kengtung, with Thailand via Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Meisei checkpoints, with Bangladesh via Sittway and Maungtaw and with India through Tamu and Reed border crossings, respectively. Myanmar mainly exports agricultural products, animal products, marine products, minerals, forest products, manufacturing goods and others while capital goods, intermediate goods and consumer goods are imported to the country.

Source: The Global New Light of Myanmar