As a result of investigations, the Ministry of Commerce has frozen the bank accounts of 70 nationwide automobile sale centers for failing to adhere to rules and regulations.
Each bank account contains a minimum of K1.5 million, which is a prerequisite for obtaining a license from the Ministry of Commerce to import and distribute automobiles.
In the first two weeks of August, the Ministry of Commerce launched a full-scale investigation into whether automobile sale centers were following ministry regulations, maintaining their facilities, and paying taxes. They found that 77 of the country’s 132 automobile sale centers were not.
Before the Ministry could freeze their accounts and revoke their licenses, 7 companies hastily withdrew their deposits. Representatives from these 7 organizations couldn’t be reached for a comment.
Sale centers need to prove federal and local tax payments before their bank accounts are activated and they can resume business, U Myint Cho, Director of Ministry of Commerce, told Myanmar Business Today.
Most car sales centers operated for years while dodging taxes, ignoring regulations, and even failing to comply with basic structural guidelines.
“Some sale centers didn’t even have a defined location. In the course of our inspections, we found empty, dilapidated warehouses. This was in addition to a complete absence of financial disclosures and tax payments. Seven of the companies withdrew their money before we could act,” U Myint Cho told Myanmar Business Today.
While the Ministry of Commerce is responsible for dictating regulation, they are not qaulified for legal action.
“We are not equipped to disperse or enforce legal penalties. The Department of Internal Revenue will penalize on tax avoidance. We are only responsible for issuing and revoking business licenses,” U Myint Cho said.
Source: Myanmar Business Today
