An interview with Khu Lay Yeh, Deputy Head-1 of Planning, Finance and Tax Department, about the collection of taxes on the ground in Karenni State by the IEC.
Officials of the Planning, Finance and Tax Department under the Karenni State Interim Executive Council (IEC) said the department is still drafting the tax policy in Karenni State. Currently, it is carrying out the collection of taxes on the ground in accordance with the tax procedures.
Kantarawaddy Times (KT) interviewed Khu Lay Yeh, Deputy Head-1 of Planning, Finance and Tax Department, about the collection of taxes on the ground, the tax collection pattern and the use of tax revenue in the sectors.
Q: What is the IEC’s tax department mainly doing on the ground?
A: At present, the Planning, Finance and Tax Department is drafting its tax policies. For the collection of taxes on the ground, we are preparing to adjust it to suit the current situations. We are collecting tax on cargo tracks plying between Demoso and Mawchi.
Q: Let us know the IEC’s tax policy. To what extent have you developed the policy?
A: We are still drafting the tax policy. We are collecting taxes on the ground in accordance with our tax procedures. We have a lot of things to be amended during our tenure. Because on the ground, we can’t collect taxes as we did in good times. For instance, we could levy taxes on the drug store opened for the basic needs of the public, under normal circumstances. However, under these circumstances, we can’t collect taxes as the owners run it for their livelihood. We can’t collect tax as they have to struggle for livelihood. In this situation, we can’t collect taxes during this period. So we are collecting taxes by adjusting our policies to suit actual conditions.
Q: At present, how many types of taxes does the IEC collect on the ground?
A: There are many types of taxes we can collect. In detail, there are around 70 types of taxes. However, in fact, we can collect one kind of tax. At present, we are collecting the tax on cargo transport. We will collect other taxes by gradually adapting it to the policies. It is not easy for us to collect all kinds of taxes at the same time. We have to draft the policies as the public have a lot of livelihood difficulties.
Q: What are the taxes levied on drivers and motorbikes?
A: The Tax Department under the IEC collects a tax of Ks-300,000 per vehicle and Ks-30,000 per motorbike.
Q: Does the IEC collect tax on private cars?
A: No. We mainly collect taxes on cargo trucks. The public no need to pay taxes for transportation.
Q: How do you fix the tax on cargo trucks? What kind of products are restricted?
A: Regarding the cargo transportation between Demoso and Mawchi, we don’t classify the types of cargo. Except for prohibited goods, the remaining goods are allowed to carry. There are two types of goods—prohibited and restricted goods. For instance, the restricted good is rice alone. The rest are allowed to be transported. Narcotic drugs are prohibited goods. We have imposed a total ban on it. Here we are doing inspections and taking actions.
Q: When did you began collecting these taxes?
A: The collection of cargo transport started in May 2023. However, it is not okay in the current situation. For instance, we collected taxes. However, it stopped again. This is partly due to military situations. Only in January 2024, we could properly start the tax collection. At the beginning, the tax collection could not operate normally as a result of intensifying war.
Q: There are accusations that the tax amounts are raised on the ground. How do you inform the public about it? What are the penalties for carrying banned goods?
A: The IEC is collecting all taxes for the interest of the public. Our tax revenues will go to the public. We are planning to ensure that rice stocks in Demoso are sufficient for the populations there. The massive outflow of rice is not suitable. Rice stocks are sufficient for the area with high populations. The massive outflow of rice could lead to a shortage of food. So, we have to control it. We have banned the cargo trucks from carrying rice by designating it as a restricted good. For instance, the vehicle which carries rice is fined of Ks-50,000. This is not the tax but fine. For instance, we allowed the transport of rice by collecting Ks-50,000. We don’t allow the people to carry rice. Those who carry rice secretly shall face a fine. It will go to the public’s funds.
Q: There are townships and villages along the Demoso-Mawchi road. How will the IEC deal with the transport of rice for locals there?
A: The people can freely carry food stuff from Demoso to Mawchi. However, it calls for the recommendations from the home affairs department. The people there need to know it. The people can carry goods with the recommendations from the administrative body. For that, they do not need to pay taxes for it.
Q: How much tax revenue has the tax department collected so far? How are these tax revenues being used?
A: We have to send tax revenues to the leading council. From there, the tax revenues mainly go to the funds of health, education, road transportation, road repair, administration and defense. The estimated tax revenue is around Ks-700 million. In the weeks to come, the facts about tax revenues will be made public at the tax offices on the ground.
Q: Does the IEC collect taxes only on Demoso-Mawchi road? Do you collect taxes in any other places?
A: No. At present, we are collecting taxes only on the Mawchi route. The collection of taxes in other places is still underway.
Q: What are the challenges and difficulties being faced by the IEC’s tax department?
A: We have challenges. We plan to ensure the flow of tax revenues to the public. For that, we have opened the checkpoints and ensured the smooth functioning of transport routes. Those who are travelling on the route, especially all cargo trucks, are needed to abide by it. In our view, failing to abide by our rule will make the public difficult. As I said earlier, the ban on rice transport is aimed at ensuring food security for the public. However, the huge transport of rice makes the public difficult.
Q: Does the Trade, Investment and Transportation Department coordinate with the Planning, Finance and Tax Department?
A: Trade, Investment and Transportation Department is a separate department. We have coordinated with them.
Q: Is there anything else would you like to add?
A: We would like to inform the public about this. Tax collection is in the interest of the public. The public are urged to ask any inconvenience with tax collection. Tax revenues will be spent on the public services. Later, tax revenues will be used for spending on education, health, road transportation and defense. However, we still have a lot of difficulties at the beginning. The public’s greater cooperation in the tax collection is needed. We want the public to raise many questions, study it and give advice on the tax collection.
Sent by Kantarawaddy Times