The Myanmar National Democratic Alliance Army (MNDAA), also known as the Kokang Army, has begun collecting monthly taxes from shops and businesses located along the main road between Lashio and Mongyai townships in northern Shan State, according to residents.

Starting on January 12, officials from the MNDAA’s finance and revenue department notified shop owners in Nam Pawng and Ho Ya village tracts that they must pay monthly taxes throughout 2026. Collections for January began immediately, and vendors were told they would be summoned again in the coming months to continue making payments.

The areas now subject to MNDAA taxation are the same villages where residents were recently compelled to vote in both Phase 1 and Phase 2 of the regime’s election, locals said.

“Shop owners are being charged a minimum of 50 Chinese yuan per month, which is around 30,000 Myanmar kyats. The amount increases depending on the size of the shop and the type of goods sold,” a male resident from Nam Pawng told SHAN.

According to residents, the MNDAA’s tax structure ranges from 50 to 100 Chinese yuan per shop per month—approximately 30,000 to 60,000 Myanmar kyats at current market rates. Tax receipt booklets have already been issued to vendors to document payments.

Locals say the rates are particularly burdensome for small-scale businesses operating along the Lashio–Mongyai route, with some shopkeepers considering closure due to the recurring monthly cost.

“Even if we don’t agree with the payments, we have no choice but to comply,” said a female shop owner from Nam Pawng. “The amount is already high, and because it has to be paid every month, it’s very hard to manage. People pay out of fear because the soldiers are armed, and most of us depend entirely on these shops to survive.”

Residents also reported that the MNDAA’s finance and revenue office distributed tax receipt booklets in December 2025, requiring shop owners to pay around 50,000 kyats simply to obtain the booklet before any monthly taxes were collected.

Although the MNDAA officially closed its checkpoints between Lashio and Mongyai on January 1, residents say there has been no actual withdrawal of Kokang troops. MNDAA soldiers continue to move and operate freely in the area.

Similarly, residents in Mongyai Township reported that a military commission checkpoint operated by Light Infantry Battalion (LIB) 67, located near the Tangyan–Mongyai junction in Ho Ya village tract, has also been closed. However, locals say the closure of checkpoints has not reduced the presence or influence of armed forces along the route.