CNI News
5 October 2022
Remittance of salaries by Myanmar workers abroad to their families can bring benefits not only to the country but also to Myanmar workers abroad, Permanent Secretary U Nyunt Win of the Ministry of Labour told the CNI.
Myanmar workers abroad are entitled to enjoy tax exemption if they can provide evidence of remitting salaries to their families through designated banks, he told the CNI.
He said, “If they remit their salaries to their families through designated banks, the remittances are incomes they legally earn. So, they can keep the remittance receipts and apply for tax exemption when they buy immovable property. If they remit their pay through the illegal hundi system, they will have to pay taxes. It is said that the government is desperately trying to receive foreign currencies but on the other hand, it is beneficial not only for the country but also for Myanmar workers abroad. As they contribute to the interests of the country, they can take pride in themselves. When they buy immovable property like land plots and apartments, they can enjoy tax exemption by submitting the remittance receipts. It is also beneficial for them.”
The SAC should try to restore public trust first if it intends to force Myanmar workers abroad to remit a certain amount of their money through designated banks, Ko Moe Lay, a Myanmar migrant worker in Thailand, told the CNI.
A site of the fishery industry.
He said, “Frankly speaking, no one has trust in the government at present. So, the SAC must try to restore public trust in it. If they have trust in the government, they will remit their money through the designated banks. If you ask me if I want to remit my money to Myanmar through the official channels, I will have to remit my money to Myanmar when the country has a trustworthy government. If I remit my money through the official channels, they will ask for NRCs and addresses and charge higher service fees than before whether the remittances are made through designated banks or Wave Money. We don’t see any benefits for us in it.”
Currently, the government is holding discussions over the amount migrant workers are required to remit through official channels and nothing has been approved.
A present, most Myanmar workers abroad do not use official remittance channels and rely on unofficial channels.
Banknotes of Myanmar and US dollars.
Permanent Secretary U Nyunt Win said, “People are talking about the move as if it were a new system. It can also contribute to the interests of the country and it is safe. Myanmar workers abroad are currently using the hundi system, which comes to them, as they cannot go to banks. As hundi system is easy to use, workers are relying on the system. Hundi businesses, which have controlled the largest market share in the market for many years, are worried about the situation. They are not pleased with the decision of the government.”
It was also said that awareness-raising campaigns will be launched among Myanmar workers abroad.
Remittance restrictions will be imposed on Myanmar workers whether they are working abroad through overseas employment agencies or on their own arrangement.
A large number of young men in Myanmar are working in other countries including Thailand, Malaysia, Japan, South Korea, Singapore and Dubai.
