Myanmar’s military government sharply raised business taxes on internet services on Jan. The move is widely seen as an attempt to restrict internet access and control public information, especially those opposed to the military government. With the new tax, the price of an internet-enabled SIM card has soared more than 13-fold to 20,000 kyats ($11.25) from the previous 1,500 kyats ($0.84), in addition to a 15% tax on operator earnings from internet services has been applied. Significant growth is…
Myanmar’s military junta dramatically increases business tax on internet services on Jan. 8 Global Shin Kong Myanmar wrote.
The move is widely seen as an attempt to restrict internet access and control public information, especially those opposed to the military government.
With the new tax, the price of an internet-enabled SIM card has soared more than 13-fold to 20,000 kyats ($11.25) from the previous 1,500 kyats ($0.84), in addition to a 15% tax on operator earnings from internet services has been applied.
In a country where workers currently earn a minimum daily wage of 4,800 kyats ($2.70), the sharp increase could make it impossible for many to afford a new SIM card.
Curb the communication and information flow of the population
The new tax comes as Myanmar’s military junta has ordered a series of internet shutdowns and restrictions to curb communication among the population, prevent calls for democratic protests and organize other anti-junta activities, Lead to Various net failures cause significant economic losses.
The junta officially said its goal was to “reduce harm to young people” due to “excessive use of the Internet,” the report said.
However, the new tax is not only aimed at anti-coup protesters, but is also designed to offset the dramatic drop in tax revenue caused by the people’s disobedience to the junta to pay taxes.
“As the use of Internet services across the country increases, a commercial tax on Internet service consumption can increase national revenue,” he said. Global Shin Kong Myanmar Trying to justify tax increases.
Myanmar’s tax revenue fell 35% in last fiscal year
In its latest annual report for the country’s fiscal year ended Sept. 30, Myanmar’s Internal Revenue Service said tax revenue fell 35 percent to $2.7 billion, compared with $4.1 billion in the previous fiscal.
There were declines in every category, including income tax, business tax, special goods tax, stamp duty, lottery and jewellery tax, the report said. Revenues from the state lottery, for example, fell by more than two-thirds as more people refused to buy lottery tickets. Many residents also refuse to pay utility bills.
According to the World Bank, Myanmar’s economy is expected to contract by around 18% this year due to ongoing political unrest and a third wave of Covid-19 infections. Overall, 1.2 million people in the country were unemployed in the second quarter of 2021, and nearly half of Myanmar’s 55 million people (about 25 million people) will live below the national poverty line by early 2022, according to the International Labour Organization. United Nations estimates.
