22 June, 2026
In Phayathonezu town, Karen armed groups including the DKBA and authorities linked to the KNU have maintained control, and throughout 2026 they have been collecting taxes and fees from local activities such as border trade, resource extraction, property sales, and an expanding network of Chinese-run money-exchange and distribution operations.
Despite the steady collection of levies, residents say these armed groups are failing to repair damaged infrastructure—roads and bridges in and around the town remain broken—and they are not providing basic public services in education, healthcare, or rule-of-law protections, according to inquiries by the PRM with local sources.
Locals report that DKBA and KNU control over Phayathonezu dates back to around 2022–23. Since then, new charges have proliferated: taxes on home and land sales, gate and road fees for commercial traffic, and growing involvement by Chinese traders and distributors. Heavy trucks and fuel tankers passing through have worsened road damage, with little or no repairs carried out.
Community members say schools and hospitals are left to fend for themselves, security is poor, and petty crime as well as more serious incidents such as robbery and killings have increased. They say the groups collect money but do not take responsibility for public safety or essential services.
Sources familiar with the situation say vehicles carrying Thai goods are being stopped and charged between 5,000 and 10,000 Thai baht per passage. Property transactions are subject to fees paid to KNU-linked administrators ranging from 10% to 15% of the sale price. Other payments, including land or rental fees for Chinese-run distribution sites, worker levies, and security charges, are paid in millions of kyat to DKBA-affiliated actors.
Although rumors have spread on social media that the national military is attempting to retake Phayathonezu, the reality in the ground appears different: the army is maintaining a tacit coexistence with the armed groups to avoid direct clashes, while illicit businesses continue operating and certain taxes and levies are still being extracted from transporters, entrepreneurs, and Chinese-run money-exchange networks.
