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Taxation, Rule of Law, and Criminal Incidents in Upper Myanmar

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Myanmar Spring Chronicle – July 15 Viewpoint
(Moemaka, July 16, 2025)

Taxation, Rule of Law, and Criminal Incidents in Upper Myanmar

In recent days, a series of events have drawn renewed attention to the issues of taxation, law enforcement, and public order across resistance-controlled regions in Upper Myanmar, particularly Sagaing, northern Magway, and Mandalay.

Among these:

  • A February murder case in Shwebo involving Catholic priest Fr. Martin Donnel, who was killed with a machete, has led to 20- and 8-year prison sentences for eight individuals, including the primary perpetrator.

  • In Wetlet Township, 11 individuals allegedly linked to PDF and PaKaHpa units were arrested in connection with a home robbery and stabbing incident in Hlattaung village.

  • On social media, lists have surfaced detailing dozens of taxation checkpoints across Wetlet Township, run by various resistance groups.

  • In Chin State, over 3 million methamphetamine tablets and 110 kg of heroin were seized at Var Bridge in Falam Township. The traffickers were reportedly armed members of Yinmabin District PDF Battalion 15, including a key figure named Kyaw Min Zaw (aka Potee), who later surrendered to a PaKaHpa unit in Salin.

Concerns About the Rule of Law and Resistance Integrity

These developments raise key questions about governance and accountability within resistance-held areas:

  • Are resistance forces upholding the rule of law, or is there increasing complicity in criminal activity such as robbery and drug trafficking?

  • How are taxes and revenues collected in these areas being managed and distributed?

The Shwebo murder trial, conducted by the NUG’s judiciary, reportedly sentenced Wint Zaw Oo (aka Taik Kaw) to 20 years in prison and seven others to 8 years each. However, concerns have emerged from Fr. Martin’s family regarding the lack of transparency, limited public information, and absence of full disclosure on the names of all 10 suspected perpetrators.

(Note: The NUG’s official statement lists all names and sentences, stating all eight received 20-year prison terms.)

This has prompted further questions:

  • Are there formal prison facilities under NUG control to serve these sentences?

  • Is public confidence in judicial procedures being upheld?

Allegations of Resistance Involvement in Crime

In Wetlet Township, the aforementioned robbery and fatal stabbing led to the arrest of 11 individuals, including PDFs, PaKaHpa members, and drone unit personnel from Meiktila.

Meanwhile, in the drug trafficking case, suspects from PDF Battalion 15 confessed to previous smuggling runs and claimed they turned to drug courier work due to financial debts incurred during resistance service. This stark admission reflects a ground-level reality of financial strain within resistance groups.

According to reports, this was their third or fourth attempt at cross-border drug delivery to India. Some of the accomplices fled during the bust in Falam.

Taxation Checkpoints and Local Frustration

In addition to criminal cases, complaints about excessive taxation have gone viral online. Shared lists document numerous toll points in Wetlet, where local and cargo vehicles are charged fees, adding pressure to ordinary citizens.

Upper Myanmar areas with no access to gold or mining revenue appear to rely on road-based taxation for income, targeting passing trade and transport. This has led to complaints about:

  • Inconsistent rates across checkpoints

  • Lack of coordination or exemptions

  • Burden on local travelers and consumers

This suggests a patchwork system of taxation, lacking unified policy or regulation.

Resistance Struggles to Sustain Itself

In the early phase of the revolution, public donations sustained the resistance. But after several years, amid intensifying conflict, many ordinary citizens have lost income sources and can no longer donate as before.

This has forced resistance units to generate their own funds, sometimes by questionable means. In the Chin drug case, the alleged trafficker’s claim that debt from fighting led him to carry narcotics illustrates the dangerous intersection of survival and ethical compromise.

This also raises questions:

  • Is the lack of rule of law in some areas enabling crime?

  • Has lawlessness become normalized in certain zones?

Urgent Need for Accountability and Reform

These events threaten to erode public trust in the revolution and tarnish its moral legitimacy. To preserve its integrity, resistance authorities—especially the NUG, PDFs, and PaKaHpa units—must:

  • Take swift action against criminal activity,

  • Improve transparency in judicial procedures, and

  • Establish consistent, regulated taxation systems.

In the struggle against dictatorship, governance standards must not be abandoned. Without accountability, the revolutionary movement risks being undermined from within.