Thailand
Myanmar: Car dealers urge customer caution
Car dealers urge customers to be cautious of some sellers hiking the prices of existing stock. The automobile prices have been pushed up by approximately K2 million since the new tax law was passed in January.
The new levies are in addition to existing duties and customs charges. As of June 9 2016, the government had levied a 15pc tax on 130 cars which has accumulated slightly more than K172 million, according to U Than Htun Aung, department of internal revenue spokesperson.
But U Aung Naing Htun, director of Sakura car sales centre, said that customers should be aware that car dealers are not paying higher taxes on vehicles imported before June 1.
He advised interested buyers to consult qualified professionals to help determine the details involving the importation of a car.
“Or else, they might end up paying a higher price for a car [which is in fact exempted from the new tax],” he said.
Despite the exemption, the new tax has still affected those cars which are excluded.
The imports which are not subject to the new tax have become popular among importers and hence the exemption has boosted the price of second-hand slips. Originally, the slips are for sales centres which want to sell the old cars and not returning the vehicles to the countries of origin. To do so, they must buy a registration slip at the Road Transport Administration Department (RTAD).
Slip prices had been stable, fluctuating between K8 million and K8.5 million (the slip price does not include the vehicle price). However, since the new tax law was passed in January, the price has risen to K10 million, said U Aung Naing Htun, adding that the prices of some old models which are eligible for import under the slip system have also increased.
At the same time, a restriction on car parking permits has helped push up slip prices, according to U Min Min Maug from Wun Yan Kha car sales centre.
The Yangon Region government has halted the issuing of letters which verify that an individual has parking space. The letter is part of the requirement for anyone importing a vehicle. This has caused confusion and outrage from the automobile industry and resulted in a jump in the number of cars with Mandalay and Bago registration plates driving around Yangon.
But cars imported through the slip system do not need a parking letter, which has further bolstered the slip prices, said U Min Min Maug.
If the regional government was to start issuing parking letters for Yangon again, the price for cars imported through channels which do not involve the slip system would likely increase by K2 million, he estimated.
Source: http://www.mmtimes.com/index.php/business/25053-car-dealers-urge.html