Myanmar: Tax on cigarette and liquor planned to raise

The 2020 Union Tax bill plans to raise special item tax levied on cigarettes and liquor up to K27 per pack for cigarettes, 60 percent of the price for liquor and beer, and 50 percent of the price for wines.

“We, in line with the country’s health policy, plan to raise special item tax on cigarettes, liquors, and wines reflecting on the inflation. Raising the tax on cigarettes is per the country’s health policy,” U Maung Maung Win, Deputy Minister of the Ministry of Planning, Finance, and Industry, told the Pyidaungsu Hluttaw when submitting the bill on July 13.

According to the bill, the planned tax on cigarettes is K10 on 20 Pcs pack priced at K600, K19 on K601-800 pack, K27 on K801-1,000 pack, and K27 on K1,001 and up.

The tax on liquor will be K3,512 on a liter bottle sold at K12,000, K3,818 on K12,001-13,000 bottle, K4,122 on K13,001-K14,000 bottle, K4,428 on K14,001-15,000 bottle, and 60 percent on K15,001 and above.

The special item tax on beer is 60 percent.

Interestingly, the 2020 Union Tax Bill leaves Article 25 of 2019 Union Tax Law, which lower tax rate levied on untaxed income.

The Internal Revenue Department has urged people to report on cigarettes, wines, and liquors without a tax stamp, or fake ones.

Cigarettes, beers, liquors and wines retailers and wholesalers need to obtain FL-11 and FL-12 licenses while restaurants, hotels, and clubs need FL-15, FL-16, and FL-17 licenses to sell alcohol.

Written by Tayzar Bhone Myint/ Translated into English by Min Thu Aung