NUG Collects Taxes In Kalay

By Network Media Group
Wednesday, May 3, 2023

The interim National Unity Government (NUG) has announced that it’ll begin tax collection in Kalay Township by the Kalay Township People’s Police (KTPP), which has promised protection for businesses and individuals who pay into the scheme.

“Some business people are operating in the area we control. If they pay taxes, we’ll fully protect their businesses,” a KTPP information department officer told NMG on condition of anonymity. The KTPP warned of action against those who refuse to pay and continue to operate in the Kalay People Defence Force (PDF) controlled areas.

The programme was launched at the direction of the NUG’s interior and immigration ministry in the township in Sagaing Region.

According to the KTPP, which handles judiciary matters in the areas under the PDF’s control, the tax revenue will be used for the security, defence and administration of the PDF, the People’s Administration and the NUG in Kalay Township. The officer said they’ll not publicly disclose who pays the taxes out of concern for their safety.

“The taxes that are levied depend on their business,” he explained. A licence from the NUG is required to mine mineral resources such as coal and petroleum. If they already have a licence from the interim government, they’ll collect 25,000 kyat ($12) per tonne of coal, the official said. However, if the former National League for Democracy’s (NLD) licence has already expired and they have a new agreement with the regime, they’ll have to pay 95,000 kyat per tonne of coal. And they have to pay a penalty of 50,000 kyat if they exceed the amount they’re allowed to mine according to the contract.

The officer said that the companies can renew the licence they have with the NLD with the NUG.

Thirty percent of the natural resources taxes will go to NUG, the People’s Administration will get the same share and forty percent will go to the PDF.

The People’s Administration has been administering municipal taxes since 2022, but it is the first time it has taken funds under the NUG.