IRD will place more fo­cus on firms in se­cu­ri­ties, Thi­lawa this year

The Myanmar Times - Weekend - - Business - CHAN MYA HTWE chan­myahtwe@mm­times.com

The Internal Rev­enue De­part­ment (IRD) will place more fo­cus on col­lect­ing taxes from the se­cu­ri­ties and bro­ker­age firms as well as com­pa­nies which run op­er­a­tions in Thi­lawa Spe­cial Eco­nomic Zone this year, said U Tet Htut Aung, di­rec­tor of the Large Tax­payer Of­fice un­der the IRD.

The IRD also ex­pects prof­itable State-owned en­ter­prises to con­trib­ute to the govern­ment cof­fers dur­ing the pe­riod, he said.

Nev­er­the­less, the bulk of the IRD’S rev­enue will come from the oil and gas sec­tor in 2018-19, said U Tet Htut Aung.

This will in­clude rev­enue from com­mer­cial, in­come and spe­cial com­modi­ties tax within the sec­tor. The IRD is also ex­pect­ing com­mu­ni­ca­tions and in­surance firms, do­mes­tic and in­ter­na­tional air­lines as well as the banks to con­trib­ute to govern­ment’s cof­fers dur­ing the fis­cal year.

In 2017-18, the govern­ment col­lected a to­tal of K1.2 tril­lion in taxes from these five in­dus­tries alone, up from K980 bil­lion in the pre­vi­ous fis­cal year, or 41 per­cent of the taxes col­lected from the whole econ­omy, said U Tet Htut Aung.

Of the five sec­tors, the oil and gas sec­tor con­trib­utes the largest amount of tax to the govern­ment, pay­ing K882 bil­lion and K696 bil­lion in taxes in 2017-18 and 2016-17, re­spec­tively.

The sec­ond largest tax con­trib­u­tor in Myan­mar is the com­mu­ni­ca­tions sec­tor, which con­trib­uted K237 bil­lion and K209 bil­lion over the same pe­riod, re­spec­tively. The bank­ing and in­surance in­dus­tries as well as the do­mes­tic and in­ter­na­tional air­lines also con­trib­uted.

The com­pa­nies are ex­pected to pay taxes on a self as­sess­ment ba­sis.

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