THE Ministry of Finance and Revenue announced last week that it is allowing, for the first time in more than a decade, foreign exchange earners to import if they pay an income tax of 10 per cent to the government.

At a meeting held at the headquarters of Ministry of Commerce on August 5, the Minister for Finance and Revenue, Major General Hla Tun, told Myanmar traders that the revived system would allow Myanmar people who have earned foreign income abroad, as well as FE earners from some local industries, to apply for a licence to import.

“Moreover, foreign exchange income earned from the CMP (Cut, Manufacture and Package) industry, and income earned from selling gems and jewellery at emporiums will be considered export earnings after they the 10 per cent tax has been levied,” said Major General Hla Tun.

Those working abroad will need to remit their foreign exchange earnings through government banks that handle foreign currencies. Account transfers of this kind have been allowed for a month now.

“Seamen and workers living in abroad can remit earnings through the Myanmar Foreign Trade Bank (MFTB) by paying a 10 per cent income tax to the government, and this foreign income will be regarded as export earnings, which can also be imported in the form of any type of goods from abroad,” said Major General Hla Tun.

“Previously, account transfers were restricted due to the small volume of export. Now that export volume is steadily increasing, account transfers will facilitate the import of more goods from abroad,” he said.

The ministry will not levy tax on imported goods under this system, he said.
Up to now, the majority of Myanmar citizens working abroad have remitted their incomes through other arrangements or through unofficial channels.

But these methods involve taking of high risks and having to pay steep service fees, said the minister.

“The government has already instructed all Myanmar embassies abroad to help those who are working there to remit their income through MFTB or MICB,” said Major General Hla Tun.

However, he warned that when it comes to applying for an import licence, export earnings must be clearly detailed in order to comply with Myanmar’s restrictions against money-laundering, and action will be taken against those who try to claim drug money as export earnings.