Ruili – Import duty has been increased as of this morning in Laiza, an area controlled by the Kachin Independence Organization .

Import duty was hiked by nearly 300 per cent on goods imported from China in Laiza, a border town on the Sino-Burma border. Traders unhappy with the increase of import duty returned in empty trucks without buying any goods.

The duty was increased on textiles, foodstuff and four other commodities. On some goods it was hiked from Kyat 4,000 to over Kyat 10, 000.

There was a dispute between Zaw Tan, the manager of the Wung Raut Company, contractor of the KIO on import taxation and traders and truck drivers. The KIO reached a ceasefire agreement with the military regime and is the largest ethnic armed group in Kachin State.

The KIO has, however, categorically denied that it has anything to do with the dispute.

"KIO has nothing to do with the dispute. Traders and truck drivers went back without buying any goods in empty trucks following a dispute with Wung Raut Company which increased the import duty. But it's not a protest against the duty hike. Six empty trucks have just left. Zaw Tan is not a KIO member, he's just a layman," a KIO official said.

Earlier, the KIO Customs Department collected import taxes on its own on the Laiza-Bah Mo-Myitkyinar border trade route. Then this was replaced with a contract system after corruption among the rank and file was revealed.

There are about 20 contractors in Laiza collecting import duty on different items.

Similarly the Border Trade Department and Customs Department of the military junta also levy taxes in Laiza in the KIA controlled area.