Some law experts say paying taxes to Arakan Army (AA) violates the anti-terrorism law leading to confiscation of assets as State fund.

AA Chief Major General Tun Myat Naing told the Irrawaddy news agency that taxes will be collected from project developers and businesspeople in its controlled areas as of 2020.

He said the projects and businesses in Rakhine State and Paletwa Township in Chin State are being scrutinized while calculations are being made as to how much taxes have to be paid.

He also threatened to abolish the businesses that fail to pay taxes adding that he is considering inclusion of include government staff, police, regional government members and parliamentary representatives on taxpayer lists.

"Taxes must be paid to our ULA (United League of Arakan). If they fail, we will not allow those businesses. This is what I say simply. We have yet to establish Arakan government. But we will establish Arakan public authority," the Irrawaddy news agency quoted Maj-Gen Tun Myat Naing.

Advocate Khin Maung Myint said taxes could be collected by a government, not an organization like AA. Both collecting and paying taxes will breach the anti-terrorism law, he added.

"AA should not have released such information. It is illegal. Only the government of a country can impose taxes. This violates the anti-terrorism law. The government can also take action," said advocate Khin Maung Myint.

The anti-terrorism law with 19 chapters was enacted on June 4, 2014.