There are over 6000 hostels that have at least 10 rooms each in Hlaing Tharyar.
U Soe Thein Aung said that under the new system, 60 percent of income will be exempt from tax, but the remaining 40pc will be taxed at a rate of 13pc. The YCDC expects to collect up to K4000 lakh from this sector.
“The tax rate is not expensive for the room charges,’’ U Myat Min Thu, MP for constituency 2 in the township.
Room charges at hostels range from about 30,000 kyat to 100,000 per month.
The city expects to earn over K4 billion in tax revenue from hostels in the township.
Daw Hnin Khaing, who owns a hostel in the 10th Ward of the township, criticised the move, saying, ‘’In the past, there was no tax for hostels. If they tax us, the owners of hostels will increase their rates. Our prices have not gone up yet, but if we have to pay a tax, we will raise them.”