Abstract

• There are four broad goals that might be attributed to a reasonable system of taxation. This includes the maximization of official revenue, limiting the negative impacts on economic welfare and the promotion of equity and political stability. Taxation system has been introduced in Myanmar since the beginning of monarchial period. Generally the rate of taxation was basically based on Dathamabaga or Thathameda that is one tenth of the percent of the produce of its labour. In the British colonial period (1826-1948), four types of taxation system was found; taxation for central government in the India Empire, taxation for provincial government, taxation for municipal department and taxation for local government. After independence of Myanmar on 4 January 1948, Myanmar’s new government, an Anti-Fascist People’s Freedom League (AFPFL) led by U Nu, faced horrendous difficulties because of internal insurrection in the country. The insurrection had substantial economic consequences its hit the government’s finance very badly. Thus, in order to maximize of official revenue in the country to cover deficient of government finance, AFPFL tried to introduce systematic and efficient system of taxation. New taxes such as commercial taxes and state lottery tax are introduced. As an attempt to examine how AFPFL Government introduced efficient system of taxation, what sorts of taxes were collected and how the rate of taxation was fixed on different kinds of taxes, this research paper, “System of Taxation in Myanmar in the Parliamentary Period (1948-1962)” is written.