Paletwa sees property taxes spike

By Myo Thiri Kyaw 22 Jul 2020

Myo Thiri Kyaw | DMG
22 July, Paletwa

Residents of Paletwa, Chin State, say they have been subjected to property taxes that are over four times higher than the regular rates of previous years.

The government collects property tax each year in July. This year, the tax increased in some cases more than fourfold, said residents.

“Last year, the property tax for a wooden house and a brick house was K5,400 [US$3.72] and the property tax for a house whose roof is nipa palm leaf and the house whose floor is bamboo, K3,000. But the tax for a wooden house and a brick house has increased to K19,000 and the tax for the latter, to K16,000,” U Khin Maung Htay told DMG.

“The municipal staff are unable to answer the question of why the tax rates have increased,” U Khin Maung Htay added. “A tax is also levied on toilets built with bricks. I have never heard of the collection of tax on toilets before. The residents said they have to pay tax for the toilet as the toilet may cause air pollution. There were some quarrels with the municipal staff as residents refused to pay the toilet tax.”

The tax hikes make life difficult for the poor at a time when there is no regional stability, he added.

U Tin Tun Aung from Paletwa said: “We want the government to suspend taxes due to the transportation and economic woes caused by the ongoing fighting in Paletwa Township.”

“The residents in Paletwa Township are in a difficult position for their survival. In such a situation, tax hikes may add fuel to the fire. I think the government should not collect taxes in such a dire time,” he added.

Upper House lawmaker Sali Myo Htike from Chin State Constituency-12 said: “The people have criticised that the taxes collected by the municipal committee in Paletwa are unfair. The tax collection is taking place in a scattershot way. I told the residents to phone the municipal department to ask for an exact answer. Until now, I have not received any reply from the residents yet.”

U Soe Htet, Chin State’s minister for Municipal Affairs, Electricity and Industry, said: “In conformity with the Municipal Law, the department collects the taxes based on the projects after seeking the approvals of the Chin State government and the parliament.”

He added: “If the current tax rates are said to be relatively high, the ministry will try to review and reduce the tax rates in the coming fiscal year. The ministry submitted it to the Chin State government and then sought the parliament’s approval.”

Meanwhile, transportation difficulties due to the ongoing conflict between the Tatmadaw and the Arakan Army (AA) in Paletwa Township have caused increases in commodity prices. Residents have had to buy food at prices three to four times higher than normal.

There are also more than 7,000 IDPs in the township.