On January 6 a new trade tax of 20,000 kyat came into force for anyone buying a new SIM card.
The military government has amended the Union Tax Law citing article 319 of the Constitution as justification of the new tax.
Critics believe the move is intended to restrict internet access and communication.
One individual said, “In my opinion, everything is restricted. Even now, prices are being raised to limit the internet. It also stipulates that a telecommunications network must be taxed.”
A statement from the military government suggests the move is in part to restrict excessive use of the internet by youth. However, critics note that increasing the cost through this tax, will not just target youth, but anyone who uses or relies on internet communications.
The trade tax law will take effect January 8 to March 13 and stipulates that vendors must apply a 15% tax on the sale of new SIM cards.
