In a renewed bid to establish its hegemony in Kachin State, the Kachin ethnic armed group, the Kachin Independence Organization (KIO) has renewed collecting taxes around Hpakant (Jade Land) as of early December...
In a renewed bid to establish its hegemony in Kachin State, the Kachin ethnic armed group, the Kachin Independence Organization (KIO) has renewed collecting taxes around Hpakant (Jade Land) as of early December. The defiant move follows the souring of the ceasefire pact with the Burmese military junta a few months ago.
The ceasefire between the KIO and the junta lasted all of 16 years.
The KIO began collecting taxes again, especially in their areas of control in Seng Ra and Gin Si villages and also in some parts, which are directly under Burmese junta control, said a KIO officer.
Tax collection depends on the willingness of the jade and gold mining companies operating in Hpakant, an area rich in the yellow metal and precious green gem stone, sought the world over, said the KIO official.
“In a situation of palpable tension between the KIO and the junta, where the former ignored the regime’s diktat to transform to the Burmese Army controlled Border Guard Force (BGF) and subsequently surrender of arms by the KIO’s armed wing the Kachin Independence Army (KIA), it cannot operate in the city. So the KIO started collecting taxes from companies operating in their zones of control,” said a resident of Hpakant.
The KIO had stopped collecting tax from the jade mining areas since the ceasefire agreement with the junta in 1994. However after the souring of relations with the junta, the outfit reviewed its tax collection policy. It notified all jade mining companies by sending letters, to test the waters, in November.
“According to the ceasefire pact we agreed not to collect tax in their (junta) areas of control. But now that the situation has undergone a sea change, we are doing what we think is right on our side,” said the KIO by way of explanation on renewing collection of tax.
The ceasefire with the regime came apart after the junta declared the KIO as an ‘insurgent’ outfit in October after the KIO refused to transform to BGF. A belligerent junta banned all business by the armed group and in an act of vengeance cut off all border trade points in KIO controlled areas. It also in a show of muscle forced the closure of all KIO liaison offices across the country.
The Hpakant resident said those who pay taxes to KIO might get mired in problems, with the junta poised to impose punishment because the regime has prohibited all KIO business ventures.
