Education, health, economic and social infrastructures can be built for the people with the use of revenues

YANGON, 27 FEB — On behalf of the Panel of Chairmen, member of Panel of Alternate Chairmen Maj-Gen Aung Thein of the Delegates Group of State Service Personnel presented the panel of chairmen’s collection of excerpts from a compilation of suggestions presented by delegates concerning the laying down of detailed basic principles concerning formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States at the Pyidaungsu Hall of the Nyaunghnapin Camp in Hmawby Township, Yangon Division on 21 February.

The following is a translation of presentation made by Maj-Gen Aung Thein.

Of the five proposed papers submitted by the delegate group of representatives-elect, which is one of the eight delegate groups to the National Convention, the proposed papers of the National Unity Party and the Mro (a) Khami National Solidarity Organization have been presented by the parties concerned, which are members of the delegate group of political parties. In like manner, it is found that other delegates concerned submitted their proposals.

Dr Hmu Htan, the independent representative-elect from the constituency of Thantlan township in Chin State and U Aung Thein, the independent representative-elect from the constituency of Ywangan township in Shan State discussed that the clarifications made by the Work Committee Chairman are complete and proper, adding that these points should be adopted as detailed basic principles in the formation of Financial Commission, and Taxation and fund allotment among the Pyidaungsu, and the Region or State.

U Tin Win, the independent representative-elect from the constituency-2 of Kyaiklat township, U Thein Kyi, the independent representative-elect from the constituency-1 of Taungdwingyi township, U Hla Soe, the independent representative-elect from the constituency-2 of Minbu township, U Mya Hlaing, the independent representative-elect from the constituency-2 of Twantay township, U Kyi Win, the independent representative-elect from the constituency-1 of Mingaladon township, and U Tin Tun Maung, the independent representative-elect from the constituency-2 of Mingaladon township discussed the matters related to the formation of Financial Commission, and Taxation and fund allotment among the Pyidaungsu, and the Region or State.

U Tun Kyaw, the independent representative-elect from the constituency of Namsam township in Shan State (North) of the group discussed that they found appropriate the matter of the formation of a financial commission chaired by the President of the State so as to draw the budget of the Union and that of the regions or states; the matter of basic principles for which the President of the State or the person named by the President of the State has to submit them to the Pyidaungsu Hluttaw for approval; and the matters that shall be included in the draft of the Union budget and in that of the Region or State. They then agreed to the adoption of these points as detailed basic principles in the framing of State constitution.

The delegate group of national races discussed that they agreed to the Work Committee Chairman’s clarifications on all the points from (a) to (r) including the formation of Financial Commission, saying that these points should be adopted as detailed basic principles.

In a separate suggestion on revenue, it said education, health, economic and social infrastructures can be built for the people with the use of revenues. Steps should therefore be taken, it added, to secure an annual targeted amount of revenues.

The group continued that as far as it has observed, the income earned from revenues is still low for the country. In the time of the present government, which is working hard to develop and modernize the country in all spheres, the onus is on the people to pay their taxes fully. This is the practice common in democratic nations. Therefore, organizational campaigns should be launched on a broader scale so as to hand down this fine practice to posterity.

The delegate group of peasants discussed that they agreed to the adoption of all the clarifications made by Work Committee Chairman U Aung Toe in the formation of Financial Commission, and Taxation and fund allotment among the Pyidaungsu, and the Region or State.

In a separate suggestion, the group said in the collection of tax revenues, severe action should be taken against corrupt employees so that the country and the people will not suffer from it. In connection with the delegation of legislative powers to the Pyidaungsu Hluttaw, and the Region or State Hluttaw, the group suggested, an exact percentage of representatives of each Hluttaw be mentioned clearly. The group also suggested that consideration be taken into the number of Hluttaw representatives each of the Pyidaungsu Hluttaw, and the Region or State Hluttaw require to pass a certain law.

The delegate group of workers discussed that they agreed to the Work Committee Chairman’s clarifications on all the points from (a) to (r) including the formation of Financial Commission, saying that these points should be adopted as detailed basic principles.

The delegate group of intellectuals and intelligentsia discussed that they agreed to the clarifications on all the points from (a) to (r) including the formation of Financial Commission, and said that these points should be adopted as detailed basic principles.

The delegate group of State service personnel discussed that they agreed to the adoption of all the points from (a) to (r) including the formation of Financial Commission as detailed basic principles.

The delegate group of other invited persons discussed that altogether 105 members of the group agreed to the adoption of all the points as detailed basic principles in connection with the formation of Financial Commission and the Taxation and funds allotment among the Pyidaungsu and Regions or States as clarified by Work Committee Chairman U Aung Toe.

In a separate suggestion, the group said the points mentioned below should be added to the list of income to be put in the Region or State Fund Account. They are:

(1) incomes and taxes related to the matters worth enacting law by the Region or State Legislative Hluttaw;

(2) taxes collected from industries related to aboveground and underground, and abovewater and underwater resources in the regions or states;

(3) taxes collected from industries related to forest products in the regions or states;

(4) taxes collected from industries and businesses related to livestock breeding, and agricultural produce;

(5) taxes collected from industries related to water and land resources;

(6) income tax;

(7) commercial tax;

Of them, points (2) to (7) should be designated as separate tax for the regions and states. It will however be necessary to divide the taxes in appropriate ratio between the Pyidaungsu Government and the regions or states.

The group continued that sale tax plays larger part in the collection of income taxes. In this process, means and ways should be sought for the following:

(1) tax should not be a burden for the tax-paying people;

(2) convenience for the tax-payer and the tax-collector; and

(3) dissuasion of the tax-collector from misconduct.

In most of the developed countries, the system on the collection of sale tax has been computerized. Government sale tax charges seven per cent at every sale of a particular product, while state and division sale tax charges six per cent at every sale of a product. The percentage of sale tax should vary from one region and the other. The practice of the system in which sale tax is collected on the voucher should be adopted as a detailed basic principle in the Union Legislative Law.

The group suggested a substitution of the Point (12) “Taxes collected on all other timber except teak and designated hard woods” with the term “Taxes collected on all timber except teak”.

The group continued that the country is making all-out efforts to eliminate narcotic drugs to an extent that all the rest of the world notice it.

In its International Narcotic Control Strategy Report (INCSR) released in 2003, the US State Department officially announced that the heroin output in Myanmar dropped 81% in a matter of seven years from 1996 to 2003.

In its suggestion, the group emphasized the leadership role of the State in the anti-narcotics campaigns, which need international cooperation and coordination.

The group also gave suggestions on the formation of a full-time committee that will help assure the coming into force of the laws passed by the Hluttaws at different levels.

The group continued that under the leadership of the President of the future State, the entire national brethren are to uphold our three main national causes — non-disintegration of the Union, non-disintegration of national solidarity, and perpetuation of sovereignty .

The President of the State is responsible for the development of the country, and the chief minister of the region or state concerned for their respective areas.

The group also said that it will be more appropriate if the chief minister of the state or the region is the person elected by the people of the region or the state concerned. The group continued that it is important for the President of the State to name the chief minister of the region or the state, who has the capacity for the post and whom the local people trust and respect.

The group also suggested a basic principle to be laid down in formulating the State constitution. It said in appointing the chief minister of the region or the state, President of the State should give first priority to the representative-elect nominated by Hluttaw representatives of the region or the state concerned.

I have presented the panel of the alternative chairmen’s collection of excerpts from the suggested proposals submitted by some delegate groups to the National Convention and from those by certain delegates to the National Convention in connection with the clarifications on the adoption of detailed basic principles for the legislative, executive and judicial sectors.

It is found that the delegate groups to the National Convention discussed in support of the clarifications made by the Chairman of the National Convention Convening Work Committee. Moreover, there are some delegates who gave suggestions, while some others remained neutral.

When the Work Committee found it proper to include the suggestions of the delegates to the National Convention in writing the State constitution, the approval was sought from the delegate groups through those who are members of the panel of chairmen.

Now, it is necessary for the Work Committee to seek the consent from the delegate groups through the members of the panel of chairmen in connection with the sound suggestion and advice that should be adopted as detailed basic principles.