Municipal Public Finance in Myanmar. Presented by Ye Htut Staff Officer Internal Revenue Department, Myanmar
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1 Municipal Public Finance in Myanmar Presented by Ye Htut Staff Officer Internal Revenue Department, Myanmar
2 outlines Ø Municipal tax in Myanmar Ø Right of enacting law Ø Legislation by the Region or State Ø Regions and States in Myanmar Ø Formation of City Development Committee Ø Kinds of tax Ø Finance and Fund by the Committee Ø Right of taxation by the Union Ø Current Union Tax Structure in Myanmar Ø Kinds of tax administered by MOPF Ø Tax sharing transferred to the Region or State Fund 11/12/18 2
3 Municipal tax in Myanmar Ø Municipal tax in Myanmar means a kind of tax collected on specified activities according to Law in order to make the Region or State sustainable development and to modernize the living standard of the People who are living in that Region or State. 11/12/18 3
4 Right of enacting law Ø The Region or State Parliament shall have the right to enact laws for the entire or any part of the Region or State related to matters prescribed in Schedule Two of the Region or State Parliament Legislative List. (section 188, 2008 Constitution) 11/12/18 4
5 Schedule Two Ø The Region or State Budget Ø The Region or State Fund Ø Land revenue Ø Excise Duty Ø Municipal taxes such as taxes on buildings and lands, water, street lightings and wheels Ø Services of the Region or State Ø Sale, lease and other means of execution of property of the Region or State Ø Disbursement of loans in the country from the Region or State Funds Ø Investment in the country from the Region or State finds Ø Local plan Ø Small loans business 11/12/18 5
6 Legislation by the Region or State Ø Region or State level organizations/ the Region or State Government submits a bill to the Region or State Parliament Ø The Chief Minister of the Region or State signs and promulgates the bill within seven days after the day of receipt 11/12/18 6
7 Regions and States in Myanmar No. Regions No. States 1. Sagaing 8. Kachin 2. Taninthayi 9. Kayah 3. Bagon 10. Kayin 4. Magway 11. Chin 5. Madalay 12. Mon 6. Yangon 13. Rakhine 7. Ayeyawady 14. Shan 11/12/18 7
8 Formation of City Development Committee Ø separate organization Ø Conducted by State/Region Funding Programme. Ø Stands by the funding of the Committee. Ø 1 Mayor Ø 4 members elected and assigned by the Cabinet Ø 6 members elected within the City area Ø Also has an authority to establish township development committee in the respective township. 11/12/18 8
9 Kinds of taxes Ø Property tax Ø General tax (building and maintaining of public roads, bridges, drainages, markets, gardens, stadiums) Ø Light tax Ø Water tax Ø Rubbish and excrement tax Ø Ownership tax 11/12/18 9
10 Finance and Funds by the Committee Ø Annual budget submitted to the Union Government. Ø A bank account opened with State/Region Funding Programme Ø Levied in accordance with budget account approved under Region or State budget law. Ø Committee s revenues deposited to the bank account Ø Expenses spent in accordance with existing financial regulations involved in annual budget. 11/12/18 10
11 Finance and Funds by the Committee (end) Ø In case of foreign currency, a separate bank account opened and deposit them to the separate account. Ø In case additional fund needed, it has a right to submit it to the Region or State Government. Ø Progress report submitted monthly to the Region or State Government. Ø Financial statements investigated by Region or State Auditor General Office. Ø Expenses spent in accordance with existing financial regulations involved in annual budget. 11/12/18 11
12 Right of taxation by the Union Ø The Union shall, with the exception of the taxes and revenues listed in Schedule Five to be collected by Regions or States, collect all other taxes and revenues in accord with the law and deposit them in the Union Fund. (Section 231(a)) 11/12/18 12
13 Current Union Tax Structure in Myanmar Types of Union Tax and Duty 1.Taxes levied on domestic production/ public consumption 1.1 Excise duty 1.2 Commercial tax 1.3 License fees on import 1.4 State lottery 1.5 Fees on vehicles, driving license, business license 1.6 Stamp Duty 1.7 Taxes for inserting a nucleus in the oyster 1.8 License fees on tour license, hotel and guesthouse license, transportation license, tour guide business license 1.9 Specific Goods Tax 2. Taxes levied on income and ownership 2.1 Income tax 3. Custom duties 4. Taxes levied on utilization of state owned properties 4.1 Taxes on land 4.2 Water taxes 4.3 Embankment taxes 4.4 Tax on extraction of forest product 4.5 Tax on extraction of mineral 4.6 Tax on fisheries 4.7 Tax on extraction of oil and natural gas 4.8 Tax on extraction of minerals and gem stones 4.9 Tax on communication services 4.10 Tax on production of electricity 4.11 Tax on the utilization of land Ministry of Home Affairs Ministry of Planning and Finance Administering Union Ministry Ministry of Commerce Ministry of and Planning and Finance Ministry of Transportation and communication Ministry of Planning and Finance Ministry of Natural Resources and Environmental Conservation Ministry of Hotel and Tourism Ministry of Planning and Finance Ministry of Planning and Finance Ministry of Planning and Finance Ministry of Home Affairs Union Territory Ministry of Home Affairs Ministry of Natural Resources and Environmental Conservation Ministry of Home Affairs Ministry of Agriculture, Livestock and Irrigation Ministry of Electricity and Energy Ministry of Natural Resources and Environmental Conservation Ministry of Transportation and communication Ministry of Electricity and Energy Ministry of Agriculture, Livestock and Irrigation 11/12/18 13
14 Kind of taxes administered by MOPF Ø Income Tax Ø Commercial Tax Ø Specific Goods Tax Ø Stamp Duty Ø State Lottery Ø Customs duty 11/12/18 14
15 Tax percentage transferred to the Region or State Fund Sr. No Kinds of tax percentage 1. Income Tax 5 % 2. Commercial Tax 15 % 3. Specific Goods Tax 15 % 4. Stamp Duty 2 % 11/12/18 15
16 Tax sharing in the existing laws Ø Collections from individual in Region or State respectively, may be transferred to the relevant budget of the Region or State in accord with the fixed percentage proportion in Region or State respectively specified by the Union Government. (Section 59, IT Law) Ø Except the tax collected on importation, commercial tax collected in Myanmar Kyats in Region or State respectively may be pay to the relevant budget of the Region or State in accord with the fixed percentage proportion in Region or State respectively specified by the Union Government. (Section 31, CT Law) 11/12/18 16
17 Tax sharing in the existing laws (end) Ø Except the revenue collected on importation of specific goods, the revenue collected in the Region or State respectively may be paid to the relevant budget of the Region or State in accordance with the fixed percentage proportion specified by the Union Government. (Section 33(a), SGT Law) Ø According to Section 3-a of the Myanmar Stamp Act, an additional stamp duty of 2 % transferred to the township development fund. 11/12/18 17
18 Thank you for your attention! 11/12/18 18
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