New Regulations for importing cars spark rush at state-run banks in Myanmar
On May 7th, the minister of Commerce in Myanmar, Mr Win Myint, has announced that all citizen who have a foreign currency account in some specific state-run banks would be allowed to import cars manufactured from year 2007 onwards with better conditions.
If all the details of the new regulations are not yet absolutely clear, it has been decided that taxes would be cut for all vehicles manufactured from year 2007 with smaller engine capacity. Thus, cars with engine capacity of 1350cc or less would be subject to 105% tax on the CIF value. Taxes would amount to 145% for cars with an engine size between 1350cc and 2000cc, and 165% for cars with an engine size bigger than 2000cc.
The new regulations give satisfaction to many Myanmar citizens who were angry that only sailors or foreign workers with foreign currency accounts had the right to import some Japanese vehicles.
It has been reported that many citizens, from both private and public sectors, have come to open foreign currency accounts, triggering a sharp increase in the demand of US dollars and a weakening of the local currency, the Kyat. The state-run banks where foreign currency accounts can be freely opened are the MFTB in Yangon, the Myanmar Economic Bank and the MICB in Yangon and Mandalay.
Fortunately, if the old car substitution rule proclaimed last year has been cancelled to be replaced by the new regulations, the holders of a permit for car substitution can still use it to import a car made between 1995 and 2006.
RamaDBK sales representatives are ready to offer some popular high quality Japanese cars manufactured from year 2007 to their Myanmar customers. We can already offer many models available right now in stock, as Toyota Belta, Corolla Axio, Allion, Vitz but also Honda Insight and any other Japanese brand vehicle.