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New import tax to push up car prices


Publish on 24 May 2016

By Aye Nyein Win

Car prices are likely to rise after June 1, dealers are warning, when importers will have to pay a 15 percent tax, which is likely to be passed on to the consumer.

The tax will be payable when the importer registers the car with the Road Transport Administration Department of Yangon, Mandalay and Nay Pyi Taw.

“Buyers should be aware that some dealers have already put prices up,” said U Aung Naing Tun, joint secretary general of the Myanmar Automobile Manufacturers and Distributors Association and director of Sakura Auto Auction centre.

“Most people are applying to the RTAD now for the licence in order to avoid the tax. But we also hear that some prices are already up by 15-20 lakhs [K1.5 million to K2 million],” he said.

The new policy will not affect cars with 1.3-litre engines, said U Min Min Maung, managing director of Wun Yan Kha car sales centre.

“We’re still selling these for the normal price. But cars like the Honda CRV or the Toyota Land Cruiser will go up by 40-50 lakhs,” he said.

The tax will be imposed on a sliding scale, ranging from 15pc for cars valued up to K30 million, 20pc up to K100 million and 30pc for more than K100 million.

Exceptions to the new rule will include cars imported under the “clunker” program in exchange for older vehicles, or those imported by the government, or those for funerals, fire fighting, religious associations, or diplomatic and United Nations use.

“Vehicles already imported but registered in June will be included,” said commerce ministry spokesperson U Myint Cho.

U Aung Naing Tun said the RTAD should take another look at the policy.

“Sales centres and buyers are criticising this new tax. It’s making cars much more expensive.”

Credit : http://www.mmtimes.com/index.php/business/20471-new-import-tax-to-push-up-car-prices.html

Created at 2016-05-30 03:22:54