FOR the functioning of a government’s administrative machinery, the financial resources that need to be allocated and spent are operated through tax revenues collected from various sources. In order to run such operations, taxes are collected from taxpayers who have a specified level of income, and these revenues are then used for development activities, thereby contributing to the advancement of the country.
Under the current tax system, and in order to ensure the collection of tax revenues and the receipt of rightful tax income, Myanmar’s taxation system under the 2008 Constitution is structured into three levels: taxes collected at the Union level, taxes collected at the regional and state government level, and taxes collected at the municipal level. The State and the respective levels of organizations are also required to use the tax revenues collected effectively for the benefit of the State and the people.
Based on a year-by-year comparison of tax collection performance, the tax revenue collected by the Ministry of Finance and Revenue was about K4,912 billion in the 2020-2021 financial year and increased to K14,070 billion in the 2025-2026 financial year. As a result, tax revenue has increased by about three times. The ratio of Union tax revenue to GDP also rose from 5.07 per cent in the 2020-2021 FY to 8.55 per cent in the 2025-2026 FY. Efforts are currently being made with the target of increasing this ratio to 9.5 per cent in the 2026-2027 FY.
Advanced technologies are being used to make tax collection and tax payment easier and more convenient for taxpayers and relevant departments. The Internal Revenue Department applies the e-Registration Management System for taxpayer registration, the e-Filing Management System for electronic tax return submission, and various electronic payment systems including m-Banking, e-Banking, i-Banking, Mobile Payment, IRD’s Tax Payment Hub, and other mobile payment options. Likewise, the Customs Department uses the Myanmar Automated Cargo Clearance System, and arrangements have been made to enable the payment of customs duties and other taxes through Internet Banking and Mobile Banking.
Taxpayers, therefore, are responsible for paying the various taxes collected by the State accurately and on time. By fulfilling this obligation, they are contributing to national development as responsible citizens. Likewise, government officials responsible for tax collection must ensure proper assessment and collection of taxes, accurate remittance to the State, identification of new taxpayers without imposing undue burden on existing taxpayers, and adherence to anti-corruption principles.
