The Customs Department in Three Pagoda Pass (TPP), Karen State, called a meeting on November 10th with local businessmen and shop owners, where they announced the creation of a new tax on businesses within the entire Township area.

Field reporters from the area testify that the TPP Customs Department has declared that it will tax betel nut shops, tea shops, restaurants, rental homes, furniture shops, as well as a number of other businesses of various descriptions; owners will hereafter be taxed 15% of the yearly incomes brought in by their respective businesses. Tax collections began immediately after the meeting’s conclusion, and field reporter sources claim that many business owners in TPP have already paid the amounts demanded by the Customs Department.

TPP Customs reportedly plans to collect the 15% tax for both the years of 2008 and 2009. A variety of shop owner interviewed told IMNA that many business owners are struggling to find funds sufficient for both years. Many have opted to pay the 2008 tax first, and are putting off funding the 2009 tax until they find sufficient capital.

The amount of money a business is taxed depends entirely on its yearly income; field reporters learned that large businesses have been taxed up to 20,000 baht per annum.

Tax collections will be managed by both the TPP Township headman, and individual Township Quarter headmen. Despite the fact that the TPP Customs Dept has mandated that each business must be taxed a full 15% of its income, many shop owners in TPP reported that they believe the actual amount of funds collected will largely be left to the discretion of the Township Quarter headmen, who have direct control over the residents in their particular quarters of domain.

A shop owner who attended the meeting told field reporters, “We don’t know yet if they will give receipts or not for the taxes.” Without receipts for paid taxes, shop owners become vulnerable to being forced to repay taxes for the same amounts already demanded, a dire prospect for business owners already struggling to pay two years’ worth of back-taxes. However, according to a field reporter’s source, individuals who have already paid taxes to the TPP Customs Department have received receipts.

“We definitely have to pay because we can’t refuse, we live under their [the Township authorities] control” the shop owner who attend the meeting added.