Department of Forestry liberalizes key forestry products by handing authority of oversight and tax collection to regional and state governments

The Department of Forestry has handed authority of oversight and tax col­lection from three high-value items, to regional and state governments, according to a Septem­ber 25 announcement.

After the proposal to de­centralize the oversight of forestry product tax col­lection was submitted to Ministry of Commerce by producers and exporters of Thanakha, Cardamon and Elephant Foot Yam, the Ministry of Commerce and Ministry of Natural Resource and Environ­mental Conservation de­cided to liberalize.

Previously, the 25 per­cent tax for the three items from state and pri­vately owned forest areas were collected by the For­estry Department.

Revealed in the state­ment, the Ministry of Commerce and the Min­istry of Natural Resources and Environmental Con­servation are seeking to ease the forestry tax for the three items which are capable of stimulated sub­stantial economic growth.

“Previously, we needed permission from the De­partment of Forestry to cultivate, transport, and trade these three items. Removing red tape and liberalizing trade will help trade flow smoother,” U Kyaw Thu, Chairman of Myanmar Fruit, Flower, and Vegetable Producers and Exporter Association, said.

As dictated by the 1992 Forestry Law, cultivators of these items required government permission to cultivate, transport, and trade from the Ministry of Natural Resources and En­vironmental Conservation.

This saddled the indus­try with a weighty beau­rocracy which impeded freedoms of movement and obstructed free mar­ket forces.

Thanakha, Cardamom, and Elephant Foot Yam grow naturally across the nation.

Thanakha, given its im­mense popularity, is com­mercially grown in Mag­way, Sagaing, Mandalay as well as other tropical areas in Myanmar.

Cardamom and El­ephant Foot Yam are also commercially grown across the nation and commonly exported to China and Japan.

According to statistics of Ministry of Commerce, in the 2015-2016 fiscal year, $212.965 million worth of forestry products, includ­ing these three items, was exported.

From April to July of this year, $77 million in forestry products has been exported. 

(Myanmar Business Today: https://www.mmbiztoday.com/articles/ministry-liberalizes-key-forestry-products )

​