Myanmar's Union Minister for Finance introduces the 2016 tax law into PyidaungsuHluttaw which is expected to generate Kyat 6,218.329 billion in revenue, including Kyat 80 billion from mobile phone top-ups

More than K6 trillion (US$4.57 billion) will be raised next year in taxes, announced finance minister U Win Shein on December 15. The Union minister was introducing the 2016 tax law into PyidaungsuHluttaw.

Taxes on imported liquor and cigarettes will remain unchanged from the current year, said the minister, announcing a range of taxes for locally produced alcohol and tobacco.

“The aim is to reduce excessive cigarette and alcohol consumption that can be harmful to health and moral behaviour and to prevent tax evasion caused by fluctuation in price and price-cutting between manufacturers and retailers and wholesalers and customers,” he told MPs.

Taxes on domestic cigarettes will range from K3 per cigarette in a pack of 20 worth K300 to K120 per cigarette in a pack worth K3001 and above.

For imported cigarettes, taxes will be unchanged at 120pc of the post-importation value.

Taxes on domestic liquors will range from K66 per litre for a bottle costing K500 to 60pc of the value of a bottle worth K10,001 or more.

The tax on imported liquor and beer of all kinds will remain unchanged at 60pc, and wine tax will stay at 50pc.

“We have drafted the 2016 tax law on the basis of performances from previous years. The rates are fair and exemptions are moderate,” said the minister.

The 2016 tax law is expected to generate K6218.329 billion in revenue, including K80 billion from mobile phone top-ups. A new tax on pearl oyster nucleus imports has been proposed by the Ministry of Mines.

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