Cigarettes will be taxed individually and alcohol will be taxed per litre, according to the draft Commercial Tax Law 2016.
For cigarettes, a roll of cigarette will be taxed from K3 to K48 depending on the price of the cigarette. For alcohol, a litre of alcohol will be taxed from K66 to K2,231 depending on the price ranges, according to the new draft.
“This law is still a draft and has not been enacted yet. However, it will be applied in the coming fiscal year, which starts in April, if it gets approved,” U Htin Lin Aung, assistant department head from Internal Revenue Department, told Myanmar Business Today.
“This 2016 draft law only updated the commercial tax section but income tax and stamp tax rates will be the same as 2015 law,” he added.
A packet of 20 cigarettes which is priced at K300 will be taxed K3 per cigarette, K14 per cigarette for K500 to K1,000 priced packets, K29 for K1,001-K2,000, K48 for K2,001-K3,000, and for packets priced over K3,000 and imported foreign cigarette packets the tax would be 120 percent of the price, according to the new draft law.
For alcohol, the tax will depend on the price of the alcohol per litre.
Alcohol costing K500 per litre will be taxed at K66 per litre, that which costs K501-K1,000 will be taxed at K197, for K1,001-2,000 at K394, for K2,001-3,000 at K656, for 3,001-4,000 at K919, for 4,001-5,000 at K1,181, for 5,001-7,000 at K1,575, for K7,001-10,000 at K2,231. Imported foreign alcohol and alcohol priced over K10,000 will be taxed 60 percent of the price, stated the new draft tax law.
“The number of consumers may decrease if the tax increases. We will also have to raise the retail price,” said a cigarette seller near Sule junction.
In the new draft tax law, the tax upon beer and wine will not be changed.
Source: Myanmar Business Today
