The Labor Ministry of the civilian National Unity Government (NUG) has dissolved the Myanmar Overseas Employment Agencies Association for collaborating with the regime and failing to protect the rights of Myanmar migrant workers.
The NUG accused the association of imposing heavy service charges on Myanmar workers and failing to rectify violations of their rights.
In a statement explaining why it dissolved the association on Monday, the NUG said the association was funding war crimes, genocide, and human rights violations. It was also enforcing the junta’s remittance and income tax rules that require overseas workers to remit at least 25 percent of their foreign currency income through the country’s banking system and pay tax in Myanmar on income earned outside the country.
The association knew that the regime would use the money collected from foreign workers to buy weapons and jet fuel to attack civilians, the NUG said.
The association was formed as the Myanmar Overseas Employment Agencies Federation under the supervision of Labor Ministry in 2012, but changed its name from “federation” to “association” last month.
The coup and the junta’s subsequent atrocities and economic mismanagement have caused a massive brain drain. Facing surging unemployment and inflation, young people from cities and villages have left the country after selling or pawing their homes or farms to pay service fees to agents and buy air tickets.
The cash-strapped regime has threatened to revoke the passports of Myanmar nationals working overseas if they fail to pay tax. The threat applies to Myanmar nationals working in Asian countries, including Singapore, South Korea, China, Thailand, and Japan, as well Europe, including Britain, Sweden, Denmark and Ireland.
It is estimated that there are as many as 5 million licensed and unlicensed Myanmar migrant workers in Thailand. Labor rights activists in Thailand say the regime could earn 300 million baht a year by taxing their incomes. The calculation is based on Thailand’s minimum wage.
A Myanmar national working in Singapore said: “No one wants to pay that tax. We don’t even have to pay up to 2 percent income tax to Singapore’s government. We can do nothing but pay the tax as the [Myanmar] embassy says it will not renew our passports until we pay the tax.”
In September last year, the regime introduced changes to taxation law and the income tax on Myanmar migrant workers took effect on October 1 last year.
Under the law, Myanmar migrant workers have to pay income tax when they apply to renew their passports at Myanmar embassies.
On Jan. 31, executive members of the association met the junta’s labor minister, Myint Naung, in Naypyitaw to discuss sending Myanmar workers to Thailand.
The NUG warned in its announcement on Monday that it would blacklist specific overseas employment agencies and take action against them under the Counter-Terrorism Law if they overcharge workers, fail to protect their interests and force them to pay remittance and tax to the regime.
In December, the NUG announced the dissolution of the country’s largest business group, the Myanmar Federation of Chambers of Commerce and Industry, saying the federation was funding the junta’s war crimes as well as genocide. Subsequently, it blacklisted 64 senior members of the group.
