Home MMBIZ News Myanmar Gov’t Gets K738 Billion from Imported Automobile Tariffs

Myanmar Gov’t Gets K738 Billion from Imported Automobile Tariffs

Myanmar government has scooped up over K738 billion ($750 million) in import tax since it relaxed car import regulations in 2011, recent data from the Ministry of Finance shows.

The vehicle import regulation was relaxed after the election during 2010-11 by making easier the import of commercial vehicles; trucks over three tonnes and buses over 15 seats. However, major lifts started from September 2011 when the breakthrough rule implemented – the “Old car substitution program” – allowing the application for car import permits to substitute older cars (initially those 20-40 years old) for newer models (those manufactured after 1995).

Since October 2011 until January 2014, the state received K738.12 billion as automobile import tax, the ministry said.

A total of 82,625 cars were imported under the “old car substitution program”, 58,532 for auto showrooms, 2,818 through sailor permits, 286 for the Ministry of Foreign Affairs, 728 through company permits, 43 through overseas worker permit, 1,997 for the Minsitry of Hotels and Tourism, 108 under military attaché permits, making the total figure of cars imported under various purchase permits to 111,311, according to the ministry announcement.

From May 2011, any Myanmar citizen aged 18 years and up could import one unit of passenger car under his/her own name, only for personal usage. The imports of passenger car for commercial purpose were still limited. Currently, in Myanmar there is no more import limits on any kind of vehicle for commercial purpose.

The changes in import regulation resulted in the number of total vehicle registration from around 2 million units (before 2010) to 3.8 million units up to July 2013, according to the Road Transportation Administration Department (RTAD).

Myanmar has imported a total of 171,341 vehicles including those under overage vehicle substitution scheme over 19 months from October 2011 to May 2013.

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