Tuesday 27 May 2014

Budget earmarked for tax software

The government has allocated this year’s budget for developing income tax collection software, according to Min Htut, director general of Internal Revenue Department.

“Our current system is to collect tax at the office. We are trying to change this system to individualise the online filing of income tax return. Now we are developing the online system in which large taxpayers can calculate their taxable income for themselves. Later we will extend the system to cover other taxpayers,” said Min Htut.

“The 2014-15 state budget has been set aside for developing the tax collection software. And bidders will be invited for sofeware development meeting international standard. Once developed, the software would be installed. IT experts would be hired to run the operations. The size of (tax collection) workforce is slated to expandby one third.”

Since the government came to power in 2010, the income tax revenue has been increasing every year. The Internal Revenue Department collected a record Ks 3.58 trillion (US$3.58 billion) in tax for the fiscal year2013-14, ending March 31.

In FY 2011-12, the revenue rose by Ks 315 billion ($315 million) to Ks 1.54 trillion ($1.54 billion) compared to the year before. It again significantly increasedto Ks 2.71 trillion ($2.71 billion) in FY 2012-13.

The country still has many problems in collecting tax, however. Although there are more than 30,000 registered companies in Myanmar, only 15,000 paid tax.

The government hasrecently warned 60 businesses that they would be penalised with a maximum jail term of 10 years if convicted following tax audit.

Last May saw the formation of the Tax Collection Monitoring Board tasked to boost income tax revenues and to ensure the international standard for tax collection and fiscal policies.

source: Eleven Myanmar

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