Myanmar regime’s tax revenue surges by a third, largely on the backs of migrant workers

Myanmar’s military regime has significantly increased its tax revenue over the past year, primarily through double taxation on Myanmar nationals working abroad, analysts say. In its 2025 annual report, the junta’s Internal Revenue Department announced it collected 5.156 trillion kyat in taxes during the 2024-25 fiscal year, up from 3.89 trillion kyat the previous year. The additional 1.266 trillion kyat, or over US$340 million—a 32.5% increase—came largely from income tax, the report shows. However, analysts point out that Myanmar’s economy has been struggling since the military coup nearly five years ago, resulting in high unemployment and stagnant wages—conditions that typically lead to lower income tax revenue. The main factors explaining the increase, they said, were higher collections from Myanmar nationals abroad, increased taxes on undisclosed income from real estate transactions, and inflation. Specifically, income tax from migrant workers abroad could make up a significant portion of the increase. As one analyst noted, however, this practice violates international norms, as most countries have Double Taxation Agreements (DTAs) in place to spare workers from a double tax burden. “Collecting income tax from people abroad is improper. Under DTAs, countries are prevented from taxing individuals who have already been taxed elsewhere. For example, Myanmar cannot tax someone already taxed in Thailand or Singapore,” he said. Myanmar has signed DTAs with eight countries: India, Laos, Malaysia, South Korea, Singapore, Thailand, the UK, and Vietnam. The analyst further suggests that the junta, which is increasing military spending, is likely using foreign currency from migrant workers to fund its weapons purchases. Due to the coup, ongoing economic hardship, and mandatory conscription, many Myanmar youths have left the country to find work abroad, particularly in Thailand. To capitalise on this, the junta amended tax laws on October 1, 2023, imposing a 2 percent tax on relevant foreign income. This came more than a decade after the practice was suspended in January 2012 as part of the economic reforms introduced by the quasi-civilian administration of former general Thein Sein. Following the 2021 coup, tax revenue plummeted as citizens boycotted payments for government services like lotteries and electricity bills in protest. In response, the Ministry of Planning and Finance has taken steps to crack down on tax evasion. On June 13, 2024, the junta announced that individuals deliberately evading taxes or improperly claiming refunds could face prosecution. The regime has also ramped up its military operations in central Myanmar and Shan, Karenni, Kachin, and Chin states ahead of elections that it plans to hold at the end of this year. Amid the ongoing conflict, it has also imposed further restrictions on trade, especially in areas with strong resistance forces, making it harder for the public to access essential goods.

Myanmar regime’s tax revenue surges by a third, largely on the backs of migrant workers

The junta collected an additional one trillion kyat in the 2024-25 fiscal year, largely thanks to workers abroad, according to analysts

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