1. Tobacco Taxation in Myanmar
MYANMAR TAX SYSTEM REFORM
Tobacco Taxation in Myanmar
The Republic of the Union of Myanmar
Ministry of Planning and Finance
Internal Revenue Department
Khin Yamon Aung
Director, IRD, Ministry of Planning and Finance
Tobacco Taxation , Washinton DC,18-19 April, 2017

2. The Republic of the Union of MyanmarD M S E B Y O F G L
KACHIN STATE
CHIN
STATE
SHAN STATE
KAYA STATE K I T
SAGAING
DIV
ISION
MAGWAY
DIVISION
BAGO
YANGON V R W H
CHINA
LAOS
THAILAND
INDIA
BANGLADAHS
The Republic of the Union of Myanmar
The Land
The largest country on the main land of
South East Asia
Capital : Nay Pyi Taw
Total land area
676,577 sq. km (216,228 sq. miles)
Total coastal line
2,832 km
Neighboring countries:
Bangladesh, India, China, Laos, Thailand
Population
51 millions
Religion
Buddhism (89.3%), Christians (5.6%),
Islam (3.8%), Hindus (0.5%),
Animism (0.5%)

3. Reform Program Reform Program commenced in 2012 with an IMF Mission.
This set out a very ambitious reform agenda.
Now Myanmar is on the way of 2nd phase of reform journey.
Along the first phase reform program, Specific Goods Tax (SGT) introduced in 2016.
Before 2016, Myanmar didn’t levy specific tax for tobacco products but levy Commercial Tax and Income Tax

4. During that time, the cigarette was charged at 100%,
And other tobacco products including Cheroot were charged at 50%.
Myanmar introduced a Specific Goods Tax (SGT), effected from 1st April 2016.
SGT is imposed on
Importation of Specific goods into Myanmar,
production of specific goods in the country and
exportation of specific goods abroad.

5. importers, producers and exporters of specific goods are subject to paying SGT.
There are 17 types of specific goods including all sort of tobacco products.
(Cigarettes, Tobacco leave, Virginia tobacco, cured, Cheroot, Cigars, pipe tobacco and Betel quid preparations)
SGT rates are published in the Union Tax Law approved by the Union Parliament.

6. Mixing specific and ad valorem rates are applied
Tobacco and Virginia tobacco are taxed at 60 %,
Cigars, Pipe Tobacco and Betel quid preparation are charged at 80%.
all types of cigarettes are charged SGT based on the price range.
There are 4 tiers,
The highest tier is 16 Kyats per stick for the ex-factory price 800 kyats and above per pack.
25 cents per pack.

7. tax collection increased significantly.
In Fiscal Year , 16 billion kyats.
In , increased to 48 billion kyats.
300% increased.
IRD plans to reduce tiers for Cigarette under SGT.
Applying Single tier is not possible due to enforcement constraint.
gradual reduction of tiers is under consideration.

8. Cheroot in Myanmar

9. Cheroot, to apply a mix type of specific and ad valorem system.
Smoking Cheroot is above 50 % of smoking volume.
Traditionally, rural people prefer to Cheroot than Cigarette.
Starting from 2017, Cheroot is subject to SGT 0.5 Kyat and 1 Kyat per stick based on the price.

10. In conclusion
tax stamp system on Cigarette as a production control measure.
Like Cigarette, Cheroot will be use tax stamp in future
Myanmar is trying to reduce the smoking and consumption of Tobacco product with the collaboration with Ministry of Health and other ministries
enforcement of Tobacco Control Law 2006
Specific Goods Tax Law 2016.

11. Thank you for your attention
Ministry of Planning and Finance The Republic of the Union of Myanmar