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MYANMAR

Tobacco tax revenues are low

06 Jun 2019. Myanmar earns the lowest tobacco tax revenue in the ASEAN region, Eleven Myanmar reported.

Taxes on tobacco and tobacco-related products are relatively low compared to those in neighbouring countries. The same tax rate is applied to cigarettes, cheroots, tobacco and tobacco-related products. MPs are to discuss a plan to increase the tax rates under the Taxation Law, the report said.

According to the Taxation Law 2018-2019 fiscal year, a MMK six per-stick-tax will be levied on a pack of cigarettes worth MMK 600 (EUR 0.35), MMK 14 on a pack worth between MMK 601 and 801 (EUR 0.46) , and MMK 21, on a pack worth between MMK 801 and MMK 1,000 (EUR 0.57).

“Myanmar manufactures 10 billion cigarettes every year, and the government should increase cigarette tax as the tax revenue is the lowest among the ASEAN countries,” Dr Than Sein, the President of Public Health Foundation, was quoted as saying.

There are three cigarette companies in Myanmar that account for more than 90 per cent of the cigarette market, the report said.