Operators to enforce 5% service tax

19 May 2015

Myanmar’s telecom service providers are due to start enforcing a 5% tax on services from 1 June 2015, following the expiry of a one-year exemption on the levy, Myanmar Times writes, citing Ministry of Communications and Information Technology (MCIT) director U Than Tun Aung. ‘The commercial tax was implemented last year but because at that time the telecoms sector was improving tremendously … the Union Government as well as the Parliament decided to give benefits to the population first, so they gave the industry a one-year exemption for the commercial tax,’ the official explained. Over the last twelve months the tax has been implemented selectively; Norwegian-owned cellco Telenor Myanmar applied the levy to its top-ups at the government’s insistence, but chose to absorb the cost of the tax. Similarly, Myanmar Post and Telecommunication (MPT) paid a contribution to the government but did not collect the 5% from users. From 1 June, however, all three mobile operators will apply the tax.