According to military sources in Naypyidaw, while Min Aung Hlaing and military council generals are dissatisfied with the tax collection being conducted by the Three Northern Alliance Brotherhood at the Muse 105-Mile Trade Zone in northern Shan State, they are unable to take any action against it. During ceasefire discussions between the military council and the MNDAA, facilitated by China, negotiations included the return of certain territories captured by MNDAA including Lashio city, the cessation of MNDAA offensives, and the reopening of border trade.
Although the military council cannot directly prevent the Northern Alliance’s tax collection at the Muse 105-Mile Trade Zone, they are treating goods entering through this gate as illegal trade and conducting seizures. Starting July 1, the Three Northern Alliance Brotherhood will begin collecting taxes through an online system, requiring merchants and companies to complete company registration and vehicle registration in advance. The Northern Alliance’s customs department will manage import-export duty rates, with the Kyinsankyaw Transportation Department implementing these procedures. As more China-Myanmar border gates open and cargo traffic increases, they plan to upgrade their online trading system and vehicle registration system.
The military council’s current operations to seize allegedly illegal goods are connected to their efforts to prevent the use of trade routes and the Kyinsankyaw gate controlled by the Three Northern Alliance Brotherhood. Military sources indicate that while they cannot prevent the Alliance’s control of the area, they will attempt to discourage the use of these trade routes by treating goods passing through them as illegal. This comes as the Northern Alliance announced their formal tax collection system, which includes online duty payments, company registration requirements, and vehicle registration processes, all to be implemented through their customs department and transportation management system.
