Junta’s Tax Crackdown Hits Mon State Businesses

The Irrawaddy

At least 15 business owners in Myanmar’s Mon State have been arrested as the junta intensifies its campaign against tax evasion and suspected support for anti‑regime groups. The arrests mark the latest phase of a sweeping crackdown ordered by the Ministry of Planning and Finance, targeting fuel and food importers as well as gold dealers.

Sources say the Internal Revenue Department (IRD) began interrogating detainees in November, following raids earlier in the year by military intelligence and the Special Investigation Department. Those detained are being held in Mawlamyine, the state capital.

One Mon State business owner, speaking anonymously, said several companies had failed to pay taxes for years. “Some company owners paid no taxes at all for about three years. All are now facing legal action,” he told The Irrawaddy.

The inspections have gone beyond routine financial checks, extending to donations and contributions, in what appears to be an effort to identify businesses accused of funding resistance groups.

The crackdown stems from orders issued in late 2023 by junta chief Min Aung Hlaing, who demanded full enforcement of tax collection amid claims of widespread evasion. His directive was reinforced by junta‑appointed Prime Minister Nyo Saw, who told ministers in October that tax collection was a top priority.

The regime believes resistance groups are benefiting from illicit cross‑border trade, and has stepped up enforcement this year. The IRD has warned that individuals who evade, underpay or falsify taxes face prosecution under both the Tax Administration Law and the Anti‑Money Laundering Law.

Tax revenues fell sharply after the 2021 coup, as boycotts sought to cut financial flows to the military. But figures began to recover in 2022‑2023 as pressure on businesses increased. Official data show private sector tax revenue reached 1.47 trillion kyats in the first quarter of fiscal 2022‑2023, with state‑owned enterprises contributing over 201 billion kyats.

The IRD forecast revenue of 9.4 trillion kyats for fiscal 2024‑2025, though it has yet to confirm whether the target was achieved.

The arrests in Mon State underline the junta’s determination to tighten its grip on the economy, using taxation not only as a revenue tool but as a means of policing dissent. For business owners, the message is clear: compliance is no longer optional.

-2025-12-27