Foreigner Income Tax collection extremely weak: MP

Foreigner Income Tax collection extremely weak: MP
Published 20 November 2018
Soe Min Htike, Sithu

Income tax collection from expats working in Myanmar are largely exempted while regulations are weak, turning tax collection into an exercise imposed only on citizens, said Lower House MP Myo Win from Mon State Constituency-8 in a debate on the Tax Management Bill sent by the Union government, at the session of Union parliament on November 19.

He argued that,“The current tax law lack any provision for the collection of taxes from foreigners. Will that point be added to the bill and the Income Tax Law? For instance, there should be provisions that foreigners should be designated as tax payers if they are employed at  income-generating works and foreigners should only be allowed to leave the country after getting the tax clearance certificates. Levying taxes on foreign economic and legal advisors working in banks, foreign companies and local companies and foreigners working in energy, industry, telecom and private sectors, is very weak as per extant law.”

“The Tax Management Bill is not intended only for tax collection but also for the management of overall tax revenue which is a major income source of the country. It is of great importance. Under the law, officials are to perform management tasks and duties from the issuance of orders and directives to the seizure of properties for lack of tax payment. In order to collect income tax and other form of taxes from international-related businesses, a person in-charge will have to cooperate with Customs, Home Affairs Ministry, Foreign Affairs and the Judicial Sector. The official must hold higher ranks,” continued Myo Win.

He then went on to state that provisions pertaining to income tax, commercial tax, corporate tax, withholding tax, stamp duty, custom duty, excise tax and import license should be added to the bill as the objective of the Tax Administration Bill is to have the same impact on different types of taxes.

Union Parliament Speaker said the joint bill committee needs to discuss the bill in time with respective committees, union level bodies and MPs if necessary, as the bill is crucial for the country.