A committee on the development of importation, installation and investment of electric vehicles and associated businesses emphasized that actions will be taken if EV importing companies fail to comply with the rules regarding EVs and related components.
Some companies are found to be making pre-order sales at showrooms and through social networks.
The committee held coordination meetings with EV importing companies in April and June and has already notified them that they are not to make more than 20 per cent profit on CIF price, not to advertise online and not to make pre-orders without vehicles arriving at the Port.
If the companies violated those policies, they will get their export/import licence revoked and face legal actions under the Consumer Protection Law, the committee warned.
Importation, manufacturing and trading of the battery electric vehicles (BEVs) and their components are exempted from commercial tax, according to Notification 4/2023 released by the Union Government on 8 May 2023, in the exercise of the power conferred by Section 37 of the Union Tax Law 2022, under the approval of the State Administration Council.
Also, the Customs duty exemption on electric vehicles (EVs) and their components was extended until the end of March 2024, according to the Ministry of Planning and Finance.
Myanmar Investment Commission also released a statement on 15 February that electric vehicles and related businesses will be promoted as the priority sector, according to its notification dated 15 February.
In the exercise of the power conferred by Sections 43 and 100 (B) of the Myanmar Investment Law, the MIC issued this statement with the approval of the Union government.
Enterprises executing installation, manufacturing and restoration services of the EVs, renewable electricity generation, EVs charging service businesses, electric vehicle battery production, EV battery and related service business, electric bus operation services, electric taxi and transport service businesses and scientific research development business are included in those priority sectors.
During the establishment and ideation phase for incorporation and operations, those businesses can seek permits from the MIC to enjoy tariff relief or zero-customs tariff status and the exemption for other taxes levied in the country under Section 77 (A) of the Myanmar Investment Law and income tax exemption under Section 75 (C) of the Myanmar Investment Law for the importations of machinery, essential equipment and accessories, spare parts and construction raw materials that cannot be found in domestic markets.
Myanmar has been bringing in electric vehicles (EVs) under the Customs tariff relaxation through seaborne and border trade routes, according to the Ministry of Commerce.
As of 30 June, 3,206 EVs were registered with the Road Transportation Administration Department, including 467 private EVs, two light load trucks, 2,474 two-wheel vehicles and 263 three-wheel vehicles. — NN/EM
