The tax rate for cross-border trade within Asean Economic Community (AEC) will be reduced to zero percent by 2018, an official from the Myanmar Customs Department told Myanmar Business Today.
“Of the 9,558 categories of tradable goods in Myanmar, 80 percent were untaxed in 2012, 93 percent untaxed in 2015, and most goods will be untaxed by 2018,” U Kyaw Win, director of the Customs Department told Myanmar Business Today.
“Tax has been reduced for those goods that are not exempted completely. We should wait to reduce taxes on highly imported goods and aim for the benefit of local business owners,” he added.
Those tax reductions are only applicable for trade with the countries in AEC region.
In order to aid domestic economic development, the department has hosted road shows, trade fairs, permitted temporary import of samples and enabled a six month tax-free system.
U Kyaw Win said, “The remaining goods are those essential on a national level, including some essential agricultural products.”
For the time being, Japan is providing assistance to develop an Automatic Cargo Clearance System which will commence in mid-2016, according to the Customs department.