Yangon regional government is planning to adopt a new rate of Wheel tax based on engine power starting from April 1, according to Yangon Regional Parliament meeting.
Before, it levied wheel tax based on weight of a specified vehicle model.
U Myint Thaung, Yangon Regional Minister for Planning and Finance, explained the plan to adopt new policy for levying wheel tax to the regional parliament meeting held on March 21.
According to the new policy, vehicle owners will no longer need to pay toll fees collected by Yangon City Development Committee and Yangon Regional Development Committee, once they have payed the wheel tax.
“This is an effort to set tax rates in Yangon Region in line with the present day so that we can carry out development works for the people using taxes given by the citizens,” he said.
Currently, wheel tax is collected with the rate set in 1997 which only costs K935 for a motorbike and over K2,000 for vehicles depending on the weight of the vehicle.
According to new policy, owners of vehicles under 660 CC engine power must pay K 100 daily and therefore K 36,500 annually, from 660 CC to 1,300 CC engine power K 54,750 annually with K 150 daily rate, from 1,301 CC to 2,000 CC engine power K 73,000 annually with K 200 daily rate, from 2,001 CC to 4,300 CC engine power K 91,250 annually with K 250 daily rate and from 4,301 CC and above K 109,500 annually with K 300 daily fee.
If wheel tax is levied in accordance with the rate proposed by YCDC in accordance with Regional Tax law 2018, the country will get more revenue from wheel tax at the rate which is practiced internationally.
According to the data from Road Transport Administration Department, 194,407 vehicles were registered in 2009-2010 Fiscal Year and the number surged to 539,437 in 2017-2018 Fiscal Year. Despite the rapid surge in the number of vehicles, the total revenue from levying wheel tax was only around K 2 billion.