The Karenni State Municipal Ministry has only been receiving the correct amount of tax from two townships according to U Aung Naing Oo, the State Municipal Minister.
He said tax was only properly collected in the townships of Loikaw and De Maw So and that all the state government staff salaries and funding for urban development projects had to be paid from tax remittances. In 2013 the State government received over 70 million Kyats in tax remittances and in 2014 it received over 80 million Kyats.
He said: “We do not get much tax from the other [five] townships. Previously the Union Government paid the staff salaries, but now we have to pay for staff salaries and urban development projects from the taxes we collect.”
U Daniel the chairman of the Kayah National Democracy Party said the tax system should be explained to people so that they know why they have to pay tax and that they have to pay tax on houses, residential land and other land, such as farmland
He said that even the tax collectors are unsure about tax rates and the system should be made more transparent.
U Aung Naing Oo said that out of the townships that were paying insufficient tax Mese and Hpa Sawng Townships were paying more of their taxes because the Salween Ferry Company paid them taxes. To increase their tax revenue the Municipal Department will organise more tax collections in these two townships and the other three townships in the state that pay even less tax.