Tax collection has begun for traders at the Kanyin Chaung economic zone in Maungdaw town, Arakan State.

The tax regime includes levies on several categories of commercial activity at the economic zone, including fees for road use, parking, sanitation, electricity, water, storage, and jetty access.

“The tax is collected starting yesterday, K3,000 for a tonne of goods. It includes a warehouse fee, electricity fee and sanitation [services fee] that we do not use,” said trader Mahmed Isamile.

U Aung Myint Thein, vice chair of the Kanyin Chaung economic zone project implementing committee, said: “The district government is collecting the taxes, on behalf of the state government.”

Mahmed Isamile predicted that the tax levy would decrease trade volume at the Maungdaw border trade centre.

“Trading will decrease at the Maungdaw border, due to the tax. The cost of trade at the Sittwe and Taungup borders is less,” he said.

Construction of the 50-acre Kanyin Chaung economic zone, a joint public-private partnership, began in 2015 at a cost of K3.84 billion in total, amounting to K2.5 billion from the government and K1.34 billion from the private sector.