Home Insider Local Merchants from Myawaddy Border Want Relaxed Export Taxes

Local Merchants from Myawaddy Border Want Relaxed Export Taxes

Merchants from Myawaddy Border have said they want to see relaxations made to the export tax to boost the Myanmar export sector, adding that they have to pay 2 per cent tax on total export goods to the Government. They added that Thai merchants do not have to pay tax on export goods.

Thin Thin Myat, Chairman of the Myawaddy Border Trade Chamber of Commerce, said: “To boost the rate of imported goods, we need to apply a good system. If we can change and apply good system, illegal trade rate in border areas will decrease and the rate of import goods will rise”.

According to an authorized person from the Myawaddy economic zone, the comparison between the 2016-2017 fiscal year in Thailand and in Myanmar trade volume figures showed that the legal trade volume was only just over $900 million while illegal trade volume was over $1.5 billion.

Myanmar’s foreign trade volume was $26.4 billion in total from April to March this fiscal year. Myanmar’s export volume has totaled $10.7billion and Myanmar’s import volume US$15.7 billion so far. The trade balance is more than a US$5 billion deficit.

There are 16 border trade zones in Myanmar which link with China, Thailand, India and Bangladesh. Of them, Muse border trade zone has the maximum trade value and Myawaddy, Chin Shwe Haw follow respectively. According to World Bank’s new report, Diagnostic Trade Integration Study, Rapid trade growth can help Myanmar reduce poverty and boost shared prosperity.