Rice mill owners suffer due to increased taxesJanuary 5

Rice mill owners suffer due to increased taxesJanuary 5
Buthidaung: Owners of private rice mills in Buthidaung Township have been suffering financially as five different government departments have raised taxes on mills in the township...

Buthidaung: Owners of private rice mills in Buthidaung Township have been suffering financially as five different government departments have raised taxes on mills in the township in the 2009 - 2010 fiscal year.

A rice mill owner said, "In the financial year 2008 - 2009, four government departments collected 57,000 Kyat, but this financial year, five departments are collecting 147,000 Kyat from each rice mill. We are now facing trouble because we are unable to give the money to the five government departments."

During the last fiscal year, four government departments collected taxes from rice mills - the taxation department, township administration, industry ministry no. 2, and the agriculture department. This fiscal year, the township municipal office is also collecting taxes from rice mills.

"In the last financial year, the taxation department collected 15,000 Kyats, township administration office collected 25,000 Kyats, industry ministry no. 2 collected 1,200 Kyats, and the agricultural department collected 5,000 Kyats from each rice mill. A total of 57,000 Kyats had to be paid to four government departments," he said.

"In the financial year, 2009 - 2010, the rate of taxes are 40,000 Kyats for the taxation department, 60,000 Kyats for the township administration office, 12,000 Kyats for industry ministry no. 2, 20,000 Kyats for the agriculture department, and 15,000 Kyats for the township municipal office,"  he added.

According to rice mill owner sources, many rice mill owners are suffering due to the increased taxes this financial year and most rice mill owners are refusing to pay.

Another rice mill owner from Buthidaung said on condition of anonymity, "The charge for rice mills is only 15,000 Kyats for 100 tins, and we are unable to ask for more from farmers for the rice mill. At the same time, fuel is always expensive in our area. So we are unable to pay the money asked for by five government departments."

The taxation department in Buthidaung issued a letter on December 2 to all rice mill owners, stating that all owners needed to pay the tax as soon as possible. If they fail, the authorities will charge them under penal law act of section 174 for refusing to pay tax.

In Buthidaung Township, there are about 200 rice mills, all of which are small mills run by machines connected to dynamo generators.