Myanmar auto industry seeks easing of duties on car components

A request from the local automotive industry for duties on cars assembled in the country to be reduced has been presented to Yangon Region’s chief minister, the Ministry of Planning, Finance and Industry says.

The duties imposed on components for semi-knocked down (SKD) and completely knocked down (CKD) vehicles assembled in Myanmar is the same as that imposed on completely built up vehicles imported into the country, keeping prices of locally assembled from falling, representatives of auto manufacturers told Yangon Region Chief Minister U Phyo Min Thein during a meeting that took place on February 25.

“We have considered reducing duties on auto parts for SKD cars. We should promote SKD auto manufacturing so that the country can move up the value chain into CKD. High duties on SKD cars may hinder the sector from developing. So, we have requested the chief minister help to reduce the duties and has said he will bring the matter up to the union government,” said a senior officer of the Ministry of Planning, Finance and Industry on March 7.

Chief Minister U Phyo Min Thein had said on December 29 that Yangon would allow the registration of K10 million worth of vehicles assembled in Myanmar. Permits for the imports of vehicles to be registered in Yangon had been suspended since April 1, 2016.

On another issue faced by the automotive sector, the Ministry of Commerce said on March 8 that it will be allowing the renewal of vehicle import permits that are set to expire this month.

“We’re discussing the renewal of the imports permits that expire in March as the imports of right-hand-drive cars will no longer be allowed in the future, but we have yet to make a decision on the validity periods of the permits period,” said an official from the Ministry of Commerce

Since 2018, only imports of left-hand drive vehicles into Myanmar have been allowed, resulting in importers taking in vehicles from the Western countries only.

“It’s great news that the import permits will be renewed. Following the instruction to import left-hand drive cars only, we are mostly importing from the US, Dubai, Germany, and Canada. It takes about three months to ship the cars to Myanmar, so it’s necessary to increase the duration of import permits,” U Aung Soe, a vehicle importer, said on March 8. – Translated

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source: Myanmar Times

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