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