Medical devices import to be exempted from commercial tax

Import of medical devices would be exempted from commercial tax collected by the Custom Department at ports, according to the Internal Revenue Department.
At the meeting over tax issues between Myanmar Pharmaceutical and Medical Equipment Entrepreneurs’ Association (MPMEEA) at the Union of Myanmar Federation of Chambers of Commerce and Industry in Yangon recently, U Min Htut, Director-General of the Internal Revenue Department, said his department will negotiate with the Custom Department to give the commercial tax exemption to import medical devices.
The Director-General also explained that medical devises described in the 2018 Union Tax Law’s Section 14 (a) Table 64 and 65 are exempted from paying commercial tax. “If MPAMEEA has paid the commercial tax for those medical devices beginning from 1st April 2018, you can apply for a tax refund,” said U Min Htut.
The Customs Department Director-General also disclosed that the department is planning not to consider the supplements for producing medicines as foods and to impose lower tax rate on the supplements under the name of other products. “This move is aimed at encouraging local pharmaceutical production industry,” said the Director-General of the Customs Department. Secretary of the Myanmar Investment Commission and Director-General of Directorate of Investment and Companies Administration also urged the companies of pharmaceutical production to apply income tax exemption in accordance with the Myanmar Investment Law. Also present at the meeting on importing medical devices and tax issues were Union Minter for Planning and Finance U Soe Win.
At the meeting, MPMEEA chairman U Zaw Moe Khin suggested the government to give commercial tax exemption to import of medical devices described in the 2018 Union Tax Law Section 14(a) Table 64 and 65 and to import of raw materials for local pharmaceutical factories.

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