Kantarawaddy Times
In Karenni State, township administration councils have begun collecting taxes, but residents in Demoso Township express a desire for more straightforward and fair taxation policies.
“With monthly taxes and donations, we end up paying at least 100,000 Kyat each month. Some shops are charged 10,000 to 20,000 Kyat, but for me, it’s never below 100,000 Kyat,” said an unnamed clothing shop owner.
The Karenni Interim Executive Council (IEC) restructured the administration during the transitional period, which added Dee Baung Khu Township. This township administration council began implementing a monthly municipal tax collection starting on December 24, 2024. The tax rates are based on the size of the shops or businesses, ranging from 20,000 to 40,000 kyats.
Alongside this taxation, there are additional monthly donations collected by armed groups, according to shop owners.
“Even after paying the taxes, we still have to contribute to armed groups like the Karenni People’s Liberation Army (KNPLF), Karenni Nationalities Defense Force (KNDF), and DMO (Demoso People’s Defense Force). Sometimes, we buy donation lottery tickets or make other contributions,” another shopkeeper revealed.
In addition to local people, there are also displaced persons operating shops. Displaced people who are not locals are paying not only taxes but also land rental fees. According to shop owners on the western Demoso, displaced individuals are paying monthly rent ranging from 50,000 to 1,000,000 kyats, depending on the landowner and the specific region.
Due to the monthly payments of taxes and land rental fees, one shop owner in the Cherry Kone market stated that this is partly contributing to the rising cost of goods in the Karenni State.
“When we first arrived, rent was only 20,000 Kyat. Now, they’re asking for 1 million Kyat, citing inflation. We have no choice but to pay, and the added costs get passed on to consumers, increasing prices,” said another shopkeeper.
“Running a shop doesn’t mean we’re rich. Many of us borrowed money from friends just to start. With shop rent, water, electricity, and everything else, we feel like we’re just working to survive,” said an IDP shop owner.
In addition to taxes and rent, IDPs often face fees for utilities and contributions requested by village committees.
However, local committees argue that funds collected are used for community infrastructure projects like roads and bridges. “We use the money to build infrastructure and pay off debts incurred for community needs, like land for clinics. All funds collected are reinvested in the community,” said U Ka Li, a representative of the Lopu village committee.
The combined burden of taxes, rent, and living expenses has left many in Karenni State struggling to make ends meet. Over two-thirds of the displaced population report difficulties due to rising goods prices and limited job opportunities, affecting basic needs like food, clothing, and healthcare.
As the taxes and fees paid within shops continue to rise, the cost of goods is increasing, which is impacting consumers in the region. Business owners in Karenni State are hoping for the establishment of a more transparent tax policy.
The Karenni Interim Government (IEC) is currently drafting a tax collection policy, and once it is approved, it will be enforced uniformly across the entire state.
The Deputy Director of the IEC’s Planning, Finance, and Tax Department, Khu Lay Reh, stated, “The tax policy is in its final stages and will soon be officially ratified.”
In the western part of Demoso Township, various types of shops, such as those selling goods, clothes, medicine, footwear, beauty products, phones, poultry, meat, food, bars, and KTVs, are operating. Depending on the region, these businesses are subject to different tax obligations.