Commerce ministry lifts ban on foreign liquor imports – at a price

Sub-title: 

The white-listing of imported liquor follows years of intense lobbying by foreign producers, but hopes for a reduction in smuggled spirits may be frustrated by high import taxes.

Description: 

"Myanmar has ended a decades-old ban on liquor imports but high taxes mean the measure may not be enough to stem illicit trade in foreign spirits ­– at least in the short term. The Ministry of Commerce on May 25 issued a notification removing liquor from a list of items that are banned from import, as well as a notification outlining procedures for companies to legally import foreign alcohol into the country. The policy change is intended to meet market demand, ensure customers can access quality products, control illegal imports and increase tax revenues, the notification says. The decision to open up the market is considered a significant reform, particularly given the widespread nature of smuggling and concerns about consumer safety. Support independent journalism in Myanmar. Sign up to be a Frontier member. Mr Cedric Retailleau, managing director for Southeast Asia at French drinks giant Pernod Ricard, said the May 25 notifications were “an important step” and the company would continue to engage with the government to encourage further market liberalisation. “Progressive, step-by-step liberalisation of international spirits into Myanmar will be crucial to further tackling and reducing illicit trade and mitigating public health risks,” he said. But the impact of the move may be limited initially because the notification blocks the import of any products with a value of less than US$8 a litre in order to protect local producers. Combined with customs duties and other taxes, a one-litre bottle of legally imported spirits will cost at least $20 a litre – approximately double the smuggled products available openly on the market..."

Creator/author: 

Kyaw Ye Lynn

Source/publisher: 

"Frontier Myanmar" (Myanmar)

Date of Publication: 

2020-05-27

Date of entry: 

2020-05-27

Grouping: 

  • Individual Documents

Category: 

Countries: 

Myanmar

Language: 

English

Resource Type: 

text

Text quality: 

    • Good