Wheel taxes (particularly outside Yangon and Mandalay) are low, typically raising significantly less revenue than it costs to upkeep urban roads. County Wheel Tax County Administration Fee. Daw Thae Su Wai, MP for Ngazun constituency 1, said rural towns need the wheel tax to generate revenue. This too has saved municipal staff time and energy. The current system is confusing for motorists and government officials alike. Truckers seek reductions in Myanmar COVID-19... Myanmar releases directives for non-bank... Foreign investments in Myanmar under threat, Yangon construction sites cease operations, New Zealand suspends high level ties with Myanmar, UMFCCI shuts head office, Chin chamber objects to military takeover, Trade union in Myanmar to prosecute those taking legal action against CDM participants, Foreign businesses in Myanmar face rising uncertainty as protests escalate, Growing number of Myanmar SMEs forced to fold amid political crisis, Political development leaves Myanmar mortgage market in doubt. Tags: personal income tax in myanmar-jobsinyangon.com-rogerquest. Under the new system wheel tax is levied according to a vehicle’s engine power. Expenses . This change has reduced the number of staff administering the wheel tax from 150 to just 20. Yet, they pay much less wheel tax compared to the 2,000cc cars, which are driven only occasionally. However, for municipal authorities across Myanmar, wheel taxes present a great opportunity to fund desparately needed investments in urban infrastructure and services. With an average of just 315 kyats collected from each urban resident outside Mandalay and Yangon, it seems unlikely that wheel taxes are lighting up many teashop conversations. For most goods and services, the rate of commercial tax imposed is 5 per cent, but rates range from 0 to 8 per cent. Around the world, wheel taxes are typically collected on an annual basis and are based on easy to observe characteristics of vehicles, such as engine size or vehicle weight (things aren't quite so simple in Myanmar - see below). Across cities in Myanmar, a few common weaknesses stand outr: Compared to other countries, wheel taxes in many of Myanmar's cities are very low (see below). We unfortunately do not provide taxi rental. In Mandalay city, the wheel tax varies according to vehicle – K500 is levied on vehicles that weigh over five tonnes, K300 on vehicles that weigh from three to five tonnes, K200 on vehicles that weigh from one to three tonnes, and K100 on those that … To be a partners, currently you will need a vehicle and be a driver yourself. Presonal Relif : 20% “Last year, vehicle wheel tax was defined based on the type of car and its weight but this year, it will be based on engine power,” U Zaw Win Naing, MP from Latha township, said during a regional parliament session discussing Yangon’s new … In 2018, Yangon made changes to its wheel tax which increased revenue. Grab Myanmar. Wheel taxes in Mandalay have also been recently increased. Several municipalities (including Monywa, Bago and Thanlyin, for example) have also strengthened their wheel taxes by coordinating with the Road Transport Administration Department (RTAD) to collect wheel taxes at the RTAD office while motorists are renewing their licences (instead of collecting it from door to door). In the short term this gives cities the freedom to pursue their priorities and in the longer-term effectively re-investing tax revenues in the city can help build trust between municipal authorities and the public. – Wheel Tax. To be a partners, currently you will need a vehicle and be a driver yourself. In many countries, including Myanmar, the wheel tax is a decentralised tax – it is collected and spent at the city level. Can regions outside Mandalay and Yangon replicate the increases in revenue generated in Myanmar’s two biggest cities? Commercial tax on certain items (such as inbound air travel, real estate, gold jewelry and electricity) ranges from 1 percent to 8 percent. A wheel tax is a tax on the value a vehicle. Before the changes, Yangon had been collecting the various taxes based on 1997 legislation, which is now insufficient to meet the city’s needs. The Mandalay City Development Committee (MCDC) has announced it will rework the collection of tolls and the wheel tax on vehicles without opening a new tender for the last six months of the 2018-2019 fiscal year. 11062. No(18), 7 Mile, Pyay Road, Mayangone Township, Yangon. Revenue from toll gate collection exceeds K15 billion (US$10.95 […] None . Turning Traffic into Taxes: Why Wheel Taxes Make So Much Sense for Myanmar's Cities. Ok, so what is the current wheel tax system like in Myanmar? In Monywa, the DAO was expecting to face a shortfall in wheel tax payments of around 400 million MMK (around 40 percent of annual wheel tax revenue) as a result of COVID-19. 11062. Interest Income . Many cities have a combination of all these processes in place; revenues from toll gates and door-to-door collections are often combined in final 'wheel tax' revenue estimates. Tolls are one of MCDC’s most lucrative sources of income. This tax increase in Mandalay was supported by a smart communications strategy to reduce any public opposition to tax rises; MCDC were quick to mention that digitisation at toll gates would make paying the wheel tax easier and also that even the new wheel taxes were still just half those in Yangon. Given that roads are expensive to build and maintain (roads are one of the biggest costs for municipal authorities in Myanmar), isn’t it fair that car owners pay their fair share? In Pathein meanwhile, the entry gate has been abolished altogether, with the DAO relying instead on the annual collection of wheel tax from motorists. On the other hand, many 660cc Daihatsu Hijet vans are used on a daily basis to transport commercial goods. To put these changes into practice it’s over to Myanmar's cities to take the lead. We unfortunately do not provide taxi rental. © Copyright 2021 The Myanmar Times. A proposed new tax for the transfer of vehicles from one owner to the next will be presented to the Union government for review, Daw Nilar Kyaw, regional minister for electricity, industry, transport and communication, said during a Yangon Parliament session. Under Myanmar Income Tax Law, interest are subject to tax. These unique properties allow wheel taxes allow cities to hit multiple objectives: Wheel taxes can help tackle congestion and pollution. There is also considerable variation in the level of wheel tax across cities within Myanmar (see below). Allowance for Parents : 1,000,000 MMK for father and 1,000,000 for Mother. Mandalay Mayor U Ye Lwin said the city collected K4.47 billion (US$3.08 million) from the wheel tax in fiscal 2019-20, and would lose over K4.47 billion if it were abolished.Translated 1. This change means that YCDC is now closer to covering its transport expenses through its wheel tax revenue (see below). Plates issued – If your autocycle, automobile, or light truck is customarily kept in a jurisdiction that has a wheel tax, you must include the fee with the regular registration fee for the vehicle when you first apply for registration. However, at K150 per square feet per year, the tax collected from these small businesses is the same as that collected from larger enterprises like hotels that build porches over public spaces, for example. AYA Bank was licensed by the Central Bank of Myanmar on 2 July 2010 and relicensed under the Financial Institutions Law 2016 as a full service universal bank. WisDOT collects the wheel tax at the time of first registration and at each registration renewal. Although wheel taxes are relatively high in the urban centres of Yangon and Mandalay, wheel taxes are far lower elsewhere. Despite that, the Myanmar Road Transportation Administration Department reports 478,000 vehicles registered as of early 2015, a 90% increase since 2012. Most cities in Myanmar do already have a wheel tax.However these wheel taxes come in many different forms. Type of indirect tax: Commercial tax. All rights reserved. For Myanmar’s cities, which do not receive funding from the central government, this makes the wheel tax especially useful. Why are wheel taxes so useful for cities? ... Insurance is required as a part of the registration process, a municipal wheel tax (a registration fee for the local government) and fees for imported vehicles. The findings described above show that improvements to wheel taxes across Myanmar are both a sensible and a practical way to fund Myanmar’s fast changing cities. Child Allowance : 500,000 MMK for a child ( If the child is above 18 years old and if the child is student, allowance for this child will be considered) 3. – Wheel Tax. The government should further review its new policy to account for this,” he said. The MP pointed out that some 2,000cc-3,000cc cars used for personal purposes are rarely driven. Under Myanmar Income Tax Law, dividends received are not subject to income tax. The Myanmar Times Some high-end cars are looking a little cheaper following a reduction in taxes on special goods under the new 2018 Union Tax Law, which was signed into legislation on March 20. | +95-1 9555879. The rights for Myanmar to impose capital gains tax on non-resident investors are limited in several of Myanmar’s income tax treaties. Unlike user fees which are tied to a specific service (e.g. 4. Bane Khon (ဘီးခွန်), also known as wheel tax, isn’t a topic to get the pulse racing. A wheelage tax is a minimum $10 tax that is levied by the county board of commissioners on vehicles kept in their county when not in operation and that are subject to annual registration and taxation … The current system is confusing for motorists and government officials alike. Wheel taxes provide cities with flexible revenue. Does Grab provide taxi rental? Given their potential to fund smoother roads, tackle congestion and reduce pollution, wheel taxes are surely worth a closer look? Myanmar levies a commercial tax, instead of a value-added tax. The YCDC (Yangon City Development Committee) should review this,” said Daw Kyi Pyar, MP from Kyauktada Township. Revenue from toll gate collection exceeds K15 billion (US$10.95 […] This blog is part of RI’s ongoing work supporting Myanmar’s cities to raise sustainable revenue. Ans: Owner Book, Wheel Tax, Driving License and if the motor is used for commercial, Fright License is also needed to buy comprehensive motor insurance. Your certificate of registration will indicate that a municipal and/or county fee was paid. Yangon will this year start collecting wheel taxes based on engine power, deviating from its previous practice of collecting the tax based on vehicle weight. Some cities in Myanmar still levy an ‘animal wheel tax’ on animal carts. The MPs also agreed that the government should review its methods of collecting taxes on the use of public space for private means, such as placing power generators or stalls. 1.2.2 . Corporate Income Tax. Counties are allowed to impose an administrative fee for out-of-state and resident applicants titling motor vehicles entirely by mail. One area for reform has been the toll gates which stand at the entrance to many of Myanmar’s cities. Wheel Tax (A) 5000 Kyat / Year for Motor Cycle (B) 10000 Kyat / Year for tractors (trawlergyi) (C) 109500 Kyat / Year for Tractor and Trailor (D) 36500 Kyat / Year for Ambulance Vehicle (E) 36500 Kyat / Year for Death Body Transport Vehicle (F) Collection tor electric car by the following, (1) 1 Kilo Watt to 52.21 Kilo Watt (Under 600 CC) For further information, contact [email protected], No. Many cities have a combination of all these processes in place; revenues from toll gates and door-to-door collections are often combined in final 'wheel tax' revenue estimates. These gates are a frustration to both municipal authorities (who complain about motorists creating shortcuts to bypass the gates) and motorists (who complain about the municipal authority needlessly holding up traffic for the sake of a few kyats). Sayar San Ward, Bahan Township By increasing the cost of driving, wheel taxes can reduce the number of vehicles on the road, which improves air quality and reduces traffic congestion. Myanmar is far from alone in collecting low revenues from wheel tax, however the significant revenue generated from wheel taxes internationally confirms that there is surely an opportunity here for Myanmar’s cities. Ans: The premium rate can be from 1% to 2% based on sum insured amount, vehicle usage and cubic capacity. The Mandalay City Development Committee (MCDC) has announced it will rework the collection of tolls and the wheel tax on vehicles without opening a new tender for the last six months of the 2018-2019 fiscal year. Myanmar - Myanmar - Resources and power: Myanmar is rich in minerals, including metal ores, petroleum, and natural gas, and also has significant deposits of precious and semiprecious stones. As in Magway, the Monywa DAO has been unable to absorb this shock and has been forced to record a deficit with the Sagaing Regional Government. Wheel taxes can be closely linked to expenditure on roads. A wheel tax is a vehicle registration fee commonly used on automobiles generally less than 8000 pounds in the United States by some cities and counties. Other Significant Items . “In my opinion, the collection of wheel taxes can be further segregated between personal and commercial use,” he said. The wheel tax collection for Maungdaw are:- 18,000 kyat for a new motorbike from store buying and the person had to pay again 18,000kyat after three months for one year, 1000 kyats per day for truck, bus, car and 7000kyat per month for cycle taxi. Myanmar . 5. BEGINNING in fiscal year 2018-2019, a wheel tax will be levied, based upon the size of engines, on vehicle owners within the municipal area of Mandalay City Development Committee (MCDC). Yangon will this year start collecting wheel taxes based on engine power, deviating from its previous practice of collecting the tax based on vehicle weight. Companies in Myanmar are generally taxed at a standard flat Corporate Income Tax Rate of 25%. Maximum of eight passenger seats (in addition to the driver’s seat) Bus (Coach) More than eight passenger seats In some cities wheel tax is collected annually (either when drivers come to renew their licence or through door to door collections), in other cities the wheel tax is collected as a fee each time a vehicle enters or leaves the city. Main taxes in Myanmar. After having completed the first phase (2011/12 to 2016/17) of Reform Action Plan 2012, the Myanmar tax authorities recently embarked on the second phase (2017/18 to 2021/22). Grab Myanmar. “Last year, vehicle wheel tax was defined based on the type of car and its weight but this year, it will be based on engine power,” U Zaw Win Naing, MP from Latha township, said during a regional parliament session discussing Yangon’s new tax law yesterday. County Fee Effective Date; Clay: $25: July 1, 2020: Codington: $25: July 1, 2020: Hand: $25: July 1, 2020: Hughes: $25: August 1, 2020: Hyde: $25: July 7, 2020: Under the new law, the Special Goods Tax has been halved to 10 percent from 20pc last year. Standard rate: Generally, a 5 percent standard rate applies to most products and services. The main taxes levied by the Internal Revenue Department of Myanmar are the Corporate Income Tax, the Personal Income Tax and the Commercial Tax, as there is currently no Value-Added Tax. Does Grab provide taxi rental? 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