A review of the current real estate pricing shows that is it not in line with current market pricing. U Myint Thaung the Regional Minister for the Ministry of Planning and Finance said that the ministry will reset real estate pricing for the 2019 Fiscal Year with the approval from Yangon Region Government.
He was answering a question from U Zaw Win Naing, a Member of Regional Parliament from No.1 Constituency, Lathar Township, at the sixth regular meeting. U Zaw Win Naing questioned if the regional government has plans to reset the pricing in order to meet the current market rate.
The government regulates the real estate pricing for a couple of reasons. Essentially it comes down to controlling extremes in prices. If prices are too high, no one will buy. If it is too low then the government cannot collect taxes that are appropriate for a particular location. So in this way it also discourages tax evasion, as well as making insurance claims on property loss easier to process. However this method is not without fault.
“We update the real estate prices annually, but we are not able to update it throughout the year in order to follow the market’s fluctuations. Tax stamps and income tax are levied in accordance with the rate set by Union Tax Law enacted by Pyidaungsu Hluttaw every year and the pricing set by Yangon Region’s Pricing Committee. We will review the pricing for 2019 Fiscal Year in May 2018. Then we will reset the pricing with Regional’s government’s approval,” U Myint Thaung said.
In the 2018 Fiscal Year, he said, the government body set the real estate prices at the closet rate reflecting the market prices at the beginning of the fiscal year on basis of township, quarter, and street.
The government body for setting real estate prices updates the real estate prices based on the data from the township revenue department and real estate service associations. The body is made up of representatives from eleven departments including the YCDC, the Internal Revenue Department, and the Land Registration Department. The decision of the body is approved by Yangon Regional Government.