Local residents in Maungdaw, western Arakan State, have accused the Arakan Army (AA) of imposing excessive taxes and extorting Rohingya shop owners under threats of closure and harassment.

Shopkeepers told Arakan News Agency that the group’s so-called tax department now requires them to pay arbitrary sums twice a year, along with a licensing fee of 10,000 kyats per shop. Tax rates reportedly vary by business type, with barber shops paying 60,000 kyats and gold shops up to 250,000 kyats. Residents say the system has expanded to include small businesses that were never previously taxed, such as barbers and motorcycle repair shops.

Many Rohingya traders had already suffered severe losses during the conflict, when nearly three-quarters of goods in their shops were looted. Since returning to the town four months ago, they have been struggling to restart their livelihoods by selling what little remained of their possessions, often at a loss due to scarce buyers and rising food and commodity prices.

Residents further reported that since the AA captured Maungdaw on December 8, 2023, it has committed a series of abuses against the Rohingya population, including confiscation of homes, seizure of valuables, forced displacement, and restrictions on movement. The militia has set up checkpoints at village entrances and exits, imposed bridge-crossing fees, and banned travel between Rohingya villages.

The Arakan Army, which launched a major offensive in November 2023 against Myanmar’s military, now controls 14 out of 17 towns in Rakhine State. However, Rohingya civilians, who previously endured a campaign of mass killings and displacement by the Myanmar military in 2017, say they continue to face persecution and exploitation under the AA’s rule.

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