Although the majority of developing countries levy the sector-specific tax in addition to regular commercial tax for internet services, Myanmar does not collect the sector-specific tax till today. In order to recover the businesses, which face loss in impacts of COVID-19, the government carries out easing and postponing the tax collection.
However, as the use of internet services is on the rise across the nation, levying commercial tax over the consumption of internet services can increase the income for the State. On the other hand, the effects triggered by extreme use of internet services on the employment of the people and physical and mental sufferings of new generation students can be reduced.
The commercial tax will not be increased for calling and use of SMS. Arrangements will be made for easing the necessary restrictions for taxpayers who use the internet for the development of human resources and knowledge about health measures in levying the increased rate of commercial tax over the internet services. On one hand, efforts will be made for providing better quality service and network coverage for the users. The Union Tax Law 2021 was amended with a plan to levy the increased commercial tax.
Source: The Global New Light of Myanmar