Aug 26, 2013

Rising land prices to be controlled with tax regulation

Effectively regulating tax is vital to controlling rising land prices in Myanmar, finance deputy minister said at a press conference in Nay Pyi Taw on August 23.

“Actually, land prices increase because people buy and sell lands as if they are gambling. Myanmar has just started to develop and so people want to do some gambling. That gambling spirit cannot be easily stopped. We are trying to give a vent for the gambling spirit, and that is to establish the stock exchange. The stock exchange is a decent place for people,” said Mr Maung Maung Thein, Deputy Minister for Finance.

He said the first solution for controlling land prices is to ensure correct use of tax stamps on the land sale-contracts. “For a deal worth Ks10 million, some use the cheaper stamps used for those deals worth Ks5 million,” he said.

“The plan we are working to solve the issue is that regional governments will re-value current land prices and calculate the cost of each 1x1ft land. Yangon region has already completed it. After that, we will apply tax stamps accordingly,” the deputy minister added.

President’s Office Minister Soe Thein agreed with Maung Maung Thein on the need to enforce effective tax regulation. He said, “Land taxes need to be reviewed. Some taxes need to be applied. Now, people are dealing in lands and houses. If a tax is levied on each sale of land, the tax will control [rising land prices].”

Source: Eleven Weekly Media