1% Tax On Jewelry Purchases Reaches More Than K2.6 Billion

Source : Myanmar Business Today
View Count : 126
Nov 01, 2017

A one percent commer­cial tax on jewelry pur­chases — which started on June 1 of this year — has reached approximate­ly K2.62 billion in four months. Jewerly sellers income tax reached K209 million, said U Min Htut, Director of Internal Rev­enue Department (IRD).
        A little over K1.38 bil­lion out of the K2.6 billion in commercial tax is from the Yangon Region alone, which is the highest col­lected in the country. The total collected tax is pri­marly from the larger cit­ies, but the government is trying to expand the one percent commercial tax to smaller cities across the nation.
        Under Union Tax Law 2017, one percent com­mercial tax from jew­elry purchases and five percent commercial tax on gold bar purchases are levied. However Py­idaungsu Hluttaw — Un­ion Parliament — agreed to abolish the five percent commercial tax from gold bar purchases, while the one percent commercial tax from jewelry purchas­es would remain.
        Although the Union Tax Law has been active since April 1, taxe collec­tion didn’t start till June 1, because K5,000 and K10,000 tax stamps were only available in late May.
        ‘‘Stamps are used to re­duce tax lost. Before the stamps were available, we collected taxes by let­ting them [buyers] write on their receipts that the sales tax was paid,’’ said U Min Htut.
        According to the Com­mercial Tax Law, sellers who failed to pay taxes must pay fine equal to 10 percent of the value of each sold item, and buy­ers who inform the au­thorities of tax fraud will be awarded with the sell­ers fine.



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