Junta extends tax exemption for electric vehicles and accessories for one year

By Admin 05 May 2023

DMG Newsroom
5 May 2023, Yangon

The junta-controlled Ministry of Planning and Finance said that it has extended the tax exemption for electric vehicles (EV) and accessories imported from foreign countries for one more year.

The junta-controlled Ministry of Planning and Finance said in a statement on May 3 that Myanmar’s tariff rates set for 2022 on battery electric vehicle (BEVs), accessories and spare parts have been reduced to zero percent.

The regime’s tariff exemption on BEVs, which was first introduced in November last year, expired on March 31 this year. The junta-controlled Ministry of Planning and Finance said the tax exemption this time is valid from March 1, 2023, to March 31, 2024.

“Last year, we were also granted duty-free importation of electric vehicles from abroad,” said Dr. Soe Tun, spokesperson of the Myanmar Automobile Manufacturers and Distributors Association (MAMDA).

The zero percent tax exemption includes BEVs imported with Completely Built Up (CBU), Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) systems such as passenger vehicles, trucks, passenger vehicles, three-wheeled motorbikes, two-wheeled electric motorcycles, ambulances, two-wheeled electric bikes, rickshaws and hearses.

The ministry announced that six types of solar and electrical equipment, including solar integrated controllers, home installation models and solar installation systems, will be exempted from tax to ensure sufficient domestic electricity.

“Currently, electric vehicles have not yet arrived in Myanmar. We ordered electric vehicles from abroad. There are no charging stations for electric vehicles yet, so we can’t tell you in detail yet,” said an official from Mandalar Minn Express.

The junta’s Ministry of Industry has approved the initial importation of about 3,000 EVs, including taxis and buses, into Myanmar.

The junta’s National Steering Committee for Development of Electric Vehicles and Associated Businesses announced that the initial pilot project period for the importation of electric vehicles and accessories has been set from January 2023 to December 31 of this year.

The junta is working on the use of electric cars as a national project, but electricity generation in Myanmar has an annual supply shortfall, and electricity availability has worsened since the February 2021 coup.