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Submitted by admin on 5 October 2020

THE  import  value  of  Myanmar’s  machinery  and  spare  parts  has  estimated  at  over  US$1  billion  between  October  and  July  of  the  financial  year  2019-2020, the Ministry of Commerce’s data indicated.

Similarly, the country imported $753 million worth vehicles and spare parts.

Imports of commercial vehicles and machinery have been permitted through sea-ports and three border crossings — Muse, Myawady, and Tachilek.

“Starting from 1 January, imports of commercial vehicles on a company licence are not al-lowed. Importers are required to operate a car showroom in line with the prescribed rules and regulations. However, the new policy can pose difficulties for traders conducting business on a manageable scale,” said importers.

Under the 2021 vehicle import policy, 2019 will be the oldest model to be issued an import permit for private cars with non-commercial purpose, according to the press release of the Commerce Ministry.

 Except for machinery, all import vehicles must be left-hand drive under the 2021 vehicle import policy.

When individuals import vehicles with engines under 1,350 CC, the model year must be 2019 and later. Business people can import passenger vehicles such as mini-bus, city bus, express bus and commercial trucks manufactured in 2017 and later.

Under FOC Free-of- Charge licence system, fire trucks, ambulances and hearse vehicles manufactured in 2012 or later are allowed for import.

The country allows to bring in heavy-duty vehicles as long as they are 15 years old or less. Heavy equipment includes excavators, bulldozers, wheel loaders, vibratory roller, clamp loader, motor grader, road roller compactor, bridge crane, gantry crane, tower crane, pilling machine, crawler drill/crane, mobile crane, rough-terrain crane, forklift, boom lift, and asphalt finisher.

Myanmar cuts tariff on import of private cars and Semi-Knocked Down vehicles amid COVID-19 the impacts. This move is likely to bring down the prices of vehicles with engines above 1,500 CC. The dealers pointed out that the price is possible to drop by K2 to 15 million depending on vehicle brand and specifications.

The Ministry of Planning, Finance and Industry notified on 29 July that the government cut the tax on the importation of private cars with non-commercial purpose and SKD vehicles assembled in Myanmar starting from 1 August. It is part of the measures to remedy the businesses slowdown caused by the coronavirus pandemic.

The government also lowered Customs duty from 30 to 20 per cent on imported private cars with the engine under 2,000 CC and 40 to 30 per cent on vehicles with 2,001 CC and above. Meanwhile, the locally assembled cars under the SKD system were totally exempted from 10 per cent tax. Addition-ally, tariffs on SKD vehicles with 2001 CC and above were reduced from 20 to 5 per cent.

Additionally, starting from 7 August, registration fees at the Road Transport Administration Department (RTAD) on FOB price of the private vehicles were reduced from 30 to 15 per cent for vehicles with 1,500 CC and above, 50 to 25 per cent for vehicles with 1,351-2,000 CC, 80 to 40 per cent for cars with 2,001-5,000 CC and 120 to 60 per cent for cars with 5,001 CC and above respectively, the RTAD stated.

However, tax cuts still do not cover special goods tax, commercial tax and income tax to hold the vehicle ownership status.

Htet Myat

(Translated by Ei Myat Mon)

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