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Pyidaungsu Hluttaw shall enact required laws if the need arises to do so for the Union territories in connection with matters for which legislative powers are delegated to Region or State Hluttaws or self-administered division or zone leading bodies

YANGON, 6 March — The following is the full clarification of Secretary of the National Convention Convening Work Committee U Thaung Nyunt, on behalf of the Work Committee Chairman, concerning legislative powers for Union territories, the effect of the laws enacted by different levels of the Hluttaw and the self-administered area leading bodies and formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States, for laying down detailed basic principles for sharing of legislative power to be included in the State Constitution, at Pyidaungsu Hall of Nyaunghnapin Camp in Hmawby Township, on 3 March.

First, U Thaung Nyunt presented matters on Legislative powers for Union territories.

At the Plenary Meeting of the National Convention held on 21 May 2004, the Chairman of the National Convention Convening Work Committee explained matters in connection with the basic principles to be laid down for the legislative powers to Union territories on grounds of the matters relevant to the sharing of legislative power that shall be included in writing the State constitution.

The delegate groups —the national race delegate group, the peasant delegate group, the worker delegate group, the intellectuals and intelligentsia delegate group, State service personnel delegate group, the other invited persons delegate group and the delegate groups of the political parties — The National Unity Party, the Union Pa-O National Organization, the Mro (a) Khami National Solidarity Organization, the Lahu National Development Party, the Union Kayin League, the Kokang Democracy and Unity Party; and the Wa National Development Party — made discussions and suggestions to lay down the following para as a detailed basic principle.

“Pyidaungsu Hluttaw shall enact the required laws if the need arises to do so for the Union territories in connection with matters for which legislative powers are delegated to the Region or State Hluttaws or the self-administered division or zone leading bodies.”

Delegates of the representatives-elect delegate group of the political parties presented the same opinion as their respective parties.

Independent representatives-elect discussed in support of the clarification made by the Work Committee Chairman.

In accord with the suggestions of most of the delegate groups, the matter concerning “Pyidaungsu Hluttaw shall enact the required laws if the need arises to do so for the Union territories in connection with matters for which legislative powers are delegated to the Region or State Hluttaws or the self-administered division or zone leading bodies.” is laid down as a basic principle.

Next, U Thaung Nyunt presented the effect of the laws enacted by different levels of the Hluttaw and the self-administered area leading bodies.

At the National Convention on 21 March 2004, the Work Committee Chairman explained the detailed basic principles that should be laid down for the effect of the laws enacted by different levels of the Hluttaw and the self-administered area leading bodies.

The delegate groups —the national race delegate group, the peasant delegate group, the worker delegate group, the intellectuals and intelligentsia delegate group, State service personnel delegate group and the other invited persons delegate group; and the delegate groups of the political parties — The National Unity Party, the Union Pa-O National Organization, the Mro (a) Khami National Solidarity Organization, the Lahu National Development Party, the Union Kayin League, the Kokang Democracy and Unity Party and the Wa National Development Party — made discussions and suggestions to lay down the following paras as detailed basic principles.

1. If any of the provisions stipulated in a law enacted by the leading body of a self-administered division or a self-administered zone is in contrast with any of the stipulations contained in a law enacted by the respective region Hluttaw or state Hluttaw, adherence to the law must be in accord with the stipulations contained in the law enacted by the region Hluttaw or state Hluttaw.

2. If any of the provisions stipulated in a law enacted by the leading body of a self-administered division or a self-administered zone is in contrast with any of the stipulations contained in a law enacted by the Pyidaungsu Hluttaw, observance of the law must be in accord with the stipulations contained in the law enacted by the Pyidaungsu Hluttaw.

3. If any of the provisions stipulated in a law enacted by a region Hluttaw or a state Hluttaw is in contrast with any of the stipulations contained in a law enacted by the Pyidaungsu Hluttaw, observance of the law must be in accord with the stipulations contained in the law enacted by the Pyidaungsu Hluttaw.

4. If any of the provisions stipulated in a law enacted by the Pyidaungsu Hluttaw or a region Hluttaw or a state Hluttaw or a self-administered division or a self-administered zone leading body or any of the existing laws is in contrast with any of the stipulations contained in the Constitution, observance of the law must be in accord with the stipulations contained in the Constitution.

5. The existing laws are still in force until they are revoked or amended by the Pyidaungsu Hluttaw, and unless they are contrary to the Constitution.

Delegates of the representatives-elect delegate group of the political parties presented the same opinion as their respective parties.
Independent representatives-elect discussed in support of the clarification made by the Work Committee Chairman.

In accord with the suggestions of most of the delegate groups, the following detailed basic principles are laid down in connection with the effect of the laws enacted by different levels of the Hluttaw and the self-administered area leading bodies.

1. If any of the provisions stipulated in a law enacted by the leading body of a self-administered division or a self-administered zone is in contrast with any of the stipulations contained in a law enacted by the respective region Hluttaw or state Hluttaw, adherence to the law must be in accord with the stipulations contained in the law enacted by the region Hluttaw or state Hluttaw.

2. If any of the provisions stipulated in a law enacted by the leading body of a self-administered division or a self-administered zone is in contrast with any of the stipulations contained in a law enacted by the Pyidaungsu Hluttaw, observance of the law must be in accord with the stipulations contained in the law enacted by the Pyidaungsu Hluttaw.

3. If any of the provisions stipulated in a law enacted by a region Hluttaw or a state Hluttaw is in contrast with any of the stipulations contained in a law enacted by the Pyidaungsu Hluttaw, observance of the law must be in accord with the stipulations contained in the law enacted by the Pyidaungsu Hluttaw.

4. If any of the provisions stipulated in a law enacted by the Pyidaungsu Hluttaw or a region Hluttaw or a state Hluttaw or a self-administered division or a self-administered zone leading body or any of the existing laws is in contrast with any of the stipulations contained in the Constitution, observance of the law must be in accord with the stipulations contained in the Constitution.

5. The existing laws are still in force until they are revoked or amended by the Pyidaungsu Hluttaw, and unless they are contrary to the Constitution.

U Thaung Nyunt continued to present matters on formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States.

At the plenary session of the National Convention held on 21 March 2004, the Work Committee Chairman explained the detailed basic principles to be laid down for Formation of Financial Commission, and Taxation and funds allotment among the Pyidaungsu and Regions or States. The delegate groups gave suggestions and discussions on the matter.

The delegate groups —the national race delegate group, the peasant delegate group, the worker delegate group, the intellectuals and intelligentsia delegate group, and State service personnel delegate group — and the delegate groups of the political parties — The Union Pa-O National Organization, the Mro (a) Khami National Solidarity Organization, the Lahu National Development Party, the Union Kayin League, and the Kokang Democracy and Unity Party — made discussions and suggestions to lay down the following detailed basic principles:

(a) The budgets of Union ministries and of organizations at Union level are to be checked under the aegis of a Vice-President nominated by the President of the State, and budget appropriations of Union ministries and organizations at Union level are to be submitted to the Financial Commission.

(b) The budgets of regions or states are to be checked under the aegis of the other Vice-President nominated by the President of the State, and budget appropriations of the regions or states are to be submitted to the Financial Commission.

(c) To submit to the Pyidaungsu Hluttaw the draft of Union budget containing the Union budget with the expenditures of Union territories, the distribution of appropriate funds from Union Fund Account to regions or states, the provision of funds as a special issue and loans permission; or the draft of financial allotment; to give suggestions on financial matters worth undertaking; and to carry out the duties assigned by the Pyidaungsu Hluttaw through the promulgation of law, the Financial Commission is to be formed with following persons:

1. The President Chairman

2. The Vice-Presidents Vice-Chairmen

3. The Pyidaungsu Attorney-General Member

4. The Pyidaungsu Auditor-General Member

5. The Chief Ministers of Members

Regions and States

6. The Yangon City Council Chairman Member

7. The Pyidaungsu Minister for Finance Secretary

(d) (1) When forming the Financial Commission, the President of the State has the right to appoint a suitable person as a member on a temporary basis, if the post of a member remains vacant for a certain reason.

(2) The President of the State is to announce the formation of the Financial Commission. However, orders and directives necessary for the Financial Commission can be announced by either the President of the State or the person to whom duties are assigned by the President of the State.

(e) To submit to the Pyidaungsu Hluttaw the draft of Union budget containing the Union budget, the distribution of appropriate funds from Union Fund Account to regions or states, the provision of funds as a special case and disbursing of necessary loans, the Financial Commission is to submit them to the President of the State.

(f) The Financial Commission, if need be, may seek advice from finance experts.

(g) On behalf of the Union Government, the President of the State or the person to whom duties are assigned by the President of the State is to submit the draft of the Union budget to the Pyidaungsu Hluttaw.

(h) (1) Salary and allowance of heads and members of organizations set up according to the Constitution of the State and expenditures of those organizations at Union level;

(2) Debts the Union has to settle, expenditures related to those debts, and other expenditures related to money borrowed by the Union;

(3) Expenditures to be paid according to verdict or order or decree released by the court or a particular tribunal; and

(4) Other expenditures to be paid according to a particular existing law or a particular international treaty, for which discussions can be held at the Pyidaungsu Hluttaw. However, rejection and deduction are not allowed.

(i) The Pyidaungsu Hluttaw shall exercise in accord with majority consent the right to pass approval and to make rejection and deduction for other expenditures, save the expenditures mentioned in above paragraph (h).

(j) The Union Government is to take necessary steps according to the Union budget law enacted by the Pyidaungsu Hluttaw.

(k) Additional funds allotment law is to be enacted in accord with the procedures mentioned above, if appropriations and permitted expenditure contained in the Union budget law promulgated by the Pyidaungsu Hluttaw for the fiscal year concerned in addition to the appropriations of extra income and expenditure are necessary to be allowed.

(l) The Union Government is to take necessary steps according to the additional funds allotment law enacted by the Pyidaungsu Hluttaw.

(m) Region or State Hluttaws concerned are to be in harmony with majority consent to exercise the right to pass approval and to make rejection and deduction to the budgets of regions or states through negotiation on the chief minister concerned including the funds received by respective regions or states from the Union Fund Account according to the Union budget law or the additional fund allotment law

In doing so:

(1) Salary and allowance of heads and members of organizations set up according to the Constitution of the State and expenditures of those organizations at Union level;

(2) Salary and allowance of heads and members of leading bodies of self-administered area set up according to the Constitution of the State and expenditures of those bodies;

(3) Debts the region or state has to settle, expenditures related to those debts, and other expenditures related to money borrowed by the region or state;

(4) Expenditures to be paid according to verdict or order or decree released by the court or a particular tribunal; and

(5) Other expenditures to be paid according to a particular existing law enacted by Region or State Hluttaw, for which discussions can be held at the Region or State Hluttaw. However, rejection and deduction are not allowed.

(n) Taxes to be collected according to the law of the region or state and to be deposited in the Region or State Fund Account are as follows:

(1) Land tax;

(2) Excise;

(3) Water tax, embankment tax of dams and embankments the region or state has the right to manage, and tax on the use of electricity produced by such facilities managed by the region or state;

(4) Tolls from roads and bridges the region or state has the right to manage,

(5) (aa) Royalty collected from fresh water fisheries,

     (bb) Royalty collected from marine fisheries located in limited distance;

(6) Tax collected according to vehicles and vessels law of the region or the state;

(7) Other benefits and profits realized from the sale and rent of property owned by the region or state;

(8) Charges, taxes and other incomes realized from services provided by the region or state;

(9) Fines imposed at Region or State high courts including Region or State courts, taxes and other incomes collected for services provided;

(10) Interests realized from the lending of money of the region or state funds;

(11) Profits realized from investment made by the region or state;

(12) Taxes collected for extraction of the following items from forests in the region or state:

        (aa) Taxes collected on all other timber except teak and designated hard-wood;

       (bb) Taxes collected on firewood, charcoal, rattan, bamboo, birdnest, cutch, thanetkha, turpentine, eaglewood, and honey-based products;

(13) Registration fees;

(14) Taxes on entertainments;

(15) Salt tax;

(16) Funds received from the Union Fund Account;

(17) Contributions by organizations relevant to development affairs in the region or state;

(18) Unclaimed cash and property;

(19) Treasure trove;

(o) The region or state has the right to use their funds in accord with the law.

(p) Except the taxes to be collected by the region or state, the Union is to collect all other taxes according to law and put them in the Union Fund Account.

(q) If incomes and types of taxes are designated to be collected by the region or state for Union territories, the Union is to collect them according to law and deposit them in the Union Fund Account.

(r) The Union has the right to use the Union Fund Account in accord with the law.