Border News Agency
Pauktaw, July 12.

Residents say that the Arakan People’s Revolutionary Government is collecting taxes in areas under the control of the Arakan Army.

According to locals, the Arakan People’s Revolutionary Government has established a Central Tax Department, District Tax Offices, and Township Tax Offices to collect taxes. In addition, other departments are reportedly collecting separate taxes as well.

Township-level taxes reportedly include water tax, fire safety tax, municipal cleaning tax, property tax, shop tax, and motorcycle tax (wheel rotation tax).

In addition, taxes are being collected from traders engaged in commerce, including goods tax, internet usage tax from internet users, sales tax, and shop tax.

Although the Central Tax Department sets the standard rates for these types of taxes, locals say that the actual amounts collected vary depending on the region.

“In our area, the housing tax depends on the type of house. For a simple house, it’s 2,000 kyats, and for an apartment-style house, it’s 6,000 kyats. Except for the housing tax, all other taxes are fixed at 6,000 kyats each. People are instructed to pay each tax in two installments within a year,” a woman from Pauk Taw Township told Border News Agency.

According to residents, a household typically pays around 5,000 kyats per year for housing tax. Water tax is 3,000 kyats per month, municipal cleaning tax ranges from 3,000 to 6,000 kyats per month, fire safety tax is 1,500 kyats per month, and shop tax ranges from 10,000 to 30,000 kyats every six months.

In addition, a 3% goods tax is imposed on the value of goods imported into Arakan.

While the goods tax and housing tax are uniform across all townships, residents say that the water tax and municipal cleaning tax are generally 5,000 kyats, but in Myaybon, people have had to pay as much as 6,000 kyats.

However, after growing public criticism, residents say the municipal cleaning tax in Myaybon has been reduced to 3,000 kyats.

“It seems they reduced it because people said 6,000 was too much. It’s been a month since the reduction,” said a man from Myaybon.

According to traders, the Arakan People’s Government’s customs and taxation department collects up to 10% in taxes on timber including hardwood exported to neighboring countries as well as on buffaloes, cows, and goats.

In addition, locals say that taxes of up to 30% are being levied, with population-based quotas imposed in some cases.

However, residents in some townships say that tax collection only began after a five-month tax exemption period was granted.

“At first, we were granted a five-month tax exemption. During that period, except for large-scale traders who imported cooking oil and medicines in bulk, most town residents were exempted from taxes. But after the five months ended, they started collecting annual taxes such as housing tax, land tax, municipal tax, and water tax,” said a resident from Taunggoke.

In addition, locals say that under the title of “National Support Fund,” voluntary monetary contributions are also being collected, without any fixed amount—people can contribute as much as they wish.

In areas controlled by the Arakan Army, shop owners say shop taxes are being collected, and in some townships, the tax burden is reportedly higher.

According to shopkeepers, the amount of shop tax depends on the type of shop. For small shops, the annual tax is 10,000 kyats, while for larger shops, it can go up to 20,000 kyats.

“In town, we only have to pay 5,000 kyats for municipal tax, and there’s no housing tax. But in the rural areas, people have to pay full annual taxes. Small shops are taxed 10,000 kyats, and larger shops are taxed 20,000 kyats per year. They say the taxes are being collected to support reconstruction efforts,” said a shop owner from Kyauktaw.

The Arakan Army has fully taken control of 15 townships, including the Paletwa area, and is now implementing administrative mechanisms under the Arakan People’s Revolutionary Government.

Locals say that the Arakan Army has been collecting taxes and fees from the public since the formation of the Arakan People’s Authority, which initially established the taxation department.

After capturing towns in the decisive Arakan battles, the revolutionary government established central, district, and township tax departments and has increased tax collection, according to locals.

Although taxes are being collected from residents in the name of Arakan’s reconstruction, locals say that official announcements detailing the tax rates have not yet been made public.

While taxation is important for nation-building, locals say the amount should not be burdensome for the people, and it is equally important that public services are provided in proportion to the taxes collected.

They add that people affected by the conflict, including internally displaced persons, are still unable to rebuild their livelihoods and are struggling with basic necessities such as food, clothing, and shelter.