Tax Collection History

Internal Revenue Department was established on October 1st, 1972 under new administration system. It was established in order to combine Profit Tax Department, Commercial Tax Department, Stamp Duty Department, Lottery Department, Salt Tax Department, Excise Department, Tax Department under Administration Department and Revenue Commissioner Office. It was done as part of the preparation for the new administration system which would be developed under 1974 Constitution.

In its establishment, Internal Revenue Department collected 10 types of tax which are Income Tax, Profit Tax, Commercial Tax, Excise Tax, Lottery Tax, Stamp Duty, Land Tax, Water Tax and Reservoir Tax, Lake Tax and Mineral Tax (Crop tax in Shan State).

Before 1988, the State applied Socialist Economic system and, after 1988, it changed into Market Economic system. To make revenue collection more efficient, collection of Land Tax, Water Tax and Reservoir Tax, Excise Tax, Mineral Tax was transferred to General Administration Department and collection of Lake Tax was transferred to Fishery Department so that Internal Revenue Department continues to collect the remaining five types of tax.

While Internal Revenue Department undergoes different governments, different eras and different economic systems, it has been focusing on development of a tax system which is relevant with the system. Tax laws have been relevantly changed under the monarchy time, colonial time, Japanese occupation time, post-war time (before independence), post-independence time, Revolutionary Council time, socialist regime, SLORC regime and SPDC regime.

Now under the Union Government which has been selected by the people as per 2008 Constitution, political and economic reforms have been taken to improve democratization. In accordance with the reform activities of the government, Internal Revenue Department is taking tax reform initiatives guided by policies, objectives, strategies and tactics.