Maersk Line Myanmar (Sealand Maersk) to launch three new container vessels to meet maritime trade needs

by LOGISTICS

Maersk Line Myanmar (Sealand Maersk) will launch three new container vessels to meet maritime trade needs. Maersk Line Myanmar will launch new vessels, the Maersk Norberg, Maersk Narvik and Maersk Nesna. Of the three ships, the Maersk Norberg will dock at MITT and MIP ports, and the Launching Ceremony was held on June 10, 2021 at MIP Port. The three new ships will have a capacity of 1,750 TEU 2100 metric tons (9.5 meters). It was built specifically for the Myanmar market. With the expansion of these new container vessels, there will be enough space & equipment for exports and shipments will not have to wait for a booking.

According to the Myanmar Ports Authority, 35 container vessels are scheduled to enter the country in June to increase exports during the open season and increase imports to meet domestic demand. Last May, only 24 container vessels were scheduled to arrive, but as of May 31, a total of 37 vessels have been operated, according to the Myanmar Port Authority. International trade; Export Coordinating meetings were held to facilitate the import of goods and the flow of goods, to increase the access of container vessels and to address the need for containers for exports. At the meeting, the Chief Executive Officer; Myanma Port Authority has reported a drop in container arrivals at Yangon Port since the COVID-19 incident. The situation of increasing demand for container for export was discussed.

He also briefed on the current situation of daily port operations at various container ports. The shipping lines are also currently suspending / suspending some vessels. In May this year, a total of 24 container vessels are scheduled to be operated by shipping lines. Depending on the market demand, special flights will be provided. He explained the conditions for providing containers and refrigerators for exporters. The discovery of a new waterway on the Yangon River has allowed international vessels to enter and leave the port of Thilawa, which has been allowed to increase the restriction on the tide. According to a statement from the Myanmar Ports Authority, 152 vessels over 30,000 tonnes entered Rangoon ports and Thilawa ports within five months of the new tide restrictions being extended due to the discovery of a new waterway on the Yangon River.

Source: Daily Eleven

If the sale or exchange value of one or more assets per year does not exceed 100 lakh kyats, income tax is not required even if the capital is profitable

by ECONOMY

According to the Internal Revenue Department, sale or exchange value of one or more assets does not exceed 100 lakh kyats, there is no need to pay income tax even if the capital is profitable. If one want to clarify tax matters concerning buying and selling of cars, it is needed to carried out setting vehicle standards, submission of declaration and tax payment procedures. In case of setting vehicle standards, registration of domestic vehicles and change of owner’s name in connection with tax assessment, it is needed to contact the relevant township Revenue Department offices in the township where the taxpayer resides. In the case of importing vehicles from abroad, it is also needed to contact the Office of the Income Tax Collection for the import of motor vehicles in Yangon, Mandalay and Nay Pyi Taw.

If the taxpayers want to carry out buying/selling of vehicles; and changing the names of owners, they can submit the income declaration to the relevant township tax office where they live and submit the source of income for the purchase. If the source of income is not presented, the income tax will be paid in accordance with the tax rates in Section 25 of the Union Tax Law of 2020. In the case of selling vehicles, they have to submit the income declaration to the relevant township tax office where they live within 30 days from the date of transfer of the property and estimate the tax. According to the 2020 Union Tax Law, income tax is levied at a rate of 10% on the value of the original purchase price and the additional costs incurred in the transfer of the property. 

In selling of one or more assets per year, Income tax is not needed to be paid even if the total value of the property to be exchanged or transferred is not more than 100 lakh kyats. According to the original estimate, the Union tax collection in the 2020-2021 fiscal year is expected to reach over 8615.777 billion kyats. If we look at the annual tax collection of the Union, in the 2011-2012 financial year it was 1691429.766 million kyats, in the 2012-2013 financial year it was 3373296.761 million kyats, in the 2013-2014 financial year it was 4458776.335 million kyats. 6517979.368 million in the 2014-2015 financial year; 6314733.657 million in the 2015-2016 financial year; 7122430.228 million in the 2016-2017 financial year; 7423724.984 million in the 2017-2018 financial year; In the six months from April to September 2018, 3424206.832 million kyats; In the 2018-2019 financial year, it received 8360303.568 million kyats.

Source: Daily Eleven

Real estate sales / purchases must be assessed within one year after the current valuation; if not, it will be re-assessed according to the update valuation standards

by ECONOMY

The Internal Revenue Department (IRD) has announced that the sale and purchase of real estate must be assessed within one year after the current valuation, and if it is assessed for more than one year, it will be re-assessed according to the current valuation standards. It is needed to clarified current valuation, submission of declaration, tax payment procedures in purchasing and constructing, and selling of real estate and buildings.

If the purchasing, constructing, and selling property is located within the townships in Yangon and Mandalay Regions, the current valuation can be proceeded by contacting relevant Regional Valuation Committee, and if the place is located outside Yangon and Mandalay Development Zones, one should contact relevant township valuation committee to get the current valuation. Tax assessments must be made within one year of the valuation period. Failure to submit the tax assessment within one year of the valuation period will automatically cancel the assessment, and if the tax assessment period is more than one year, it will be revalued under current valuation standards.

For those taxpayers who purchase, construct and sell real estate and building, taxes related to purchase/construct/sell can be paid by submitting income statement to the relevant township tax office where the property is located. If it isn’t able to submit the income statement, tax will be paid in accordance with the tax rates in Section 25 of the Union Tax Law of 2020 with the stamp duty on the fixed value. If one want to sell the land or building, that person must submit the income tax return to the relevant township tax office where the property is located or within 30 days from the date of transfer of the property and estimate the tax. According to the 2020 Union Tax Law, income tax is levied at 10 percent of the proceeds, plus the original purchase price and the costs incurred in transferring the property over a specified period of time.

Source: Daily Eleven

Imports of petroleum products exceed $1.3 bln in H1

by ENERGY

Myanmar imported more than US$1.3 billion worth petroleum products during the first half (Oct-Mar) of the current financial year 2020-2021, as per the Myanmar Customs Department. The figures indicated a sharp drop of over $660 million compared to the corresponding period of last year. In the current fiscal year, Myanmar imported over 1.6 million tonnes (worth over $750 million) of diesel and over 1 million tonnes (worthover $540 million) of petrol, as per data of the Commerce Ministry. Normally, a monthly oil import is estimated at $400 million, yet the oil importers are facing banking restrictions for maritime trade. Nevertheless, oil importers via land border can use informal payment Hundi system instead, said an importer. At present, the domestic fuel oil price has now risen above 30 per cent per litre in three months, as the heightened coronavirus restriction and possible lockdown in Asia sparked oil demand concerns, coupled with strong dollar exchange rate.

The fuel oil was pegged at around at K620 per litre for Octane 92, K750 for Octane 95, K660 for diesel and K670 for premium diesel in early February 2021 in the domestic retail market. On 16 June, it rallied to the highest of K1005 for Octane 92, K1,090 for Octane 95, K1,005 for diesel and K1,015 for premium diesel, according to the local fuel oil market. Domestic oil price is positively related to the global market and the dollar value. The soaring demand drives up the oil prices rally higher, with WTI climbing above $72.46 per barrel in mid-June. Additionally, foreign exchange rate also affects the petroleum price. Kyat is depreciating in the local forex market starting from April, with above K1,640 per dollar. In mid-February, a dollar was worth only K1,430. Normally, Myanmar imports fuel oil primarily from Singapore, with monthly volumes touching 200,000 tonnes for gasoline and 400,000 tonnes for diesel.

There are about 2,000 fuel stations and over 50 oil importer companies in Myanmar, Myanmar Petroleum Trade Association stated. In early June 2021, the Ministry of Electricity and Energy notified the private sector of keeping the oil storage above 35 per cent of the storage capacity of the tanks to avoid the possible discrepancy between demand and supply. Last year, the domestic oil prices declined to start from January, owing to a fall in global oil prices. On 8 January 2020, oil prices were pegged at around K905 per litre for Octane 92, K995 for Octane 95, and K985 for diesel and premium diesel. Following the global market crashing, the domestic oil price plunged to more than 50 per cent in April against January’s prices. In late April 2020, the oil prices touched the lowest K290-330 per litre for Octane 92, K430-455 for Octane 95, K435-465 for diesel, and K445-475 premium diesel, according to the domestic oil market. Ninety per cent of fuel oil in Myanmar is imported, while the remaining 10 per cent is produced locally. 

Source: The Global New Light of Myanmar

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Maritime trade drops by $4.77 bln as of 4 June

by TRADING

The value of Myanmar’s maritime trade over the past eight months (1 Oct-4 June) of the current financial year 2020-2021 sank to US$13.275 billion, a drastic drop of over $4.77 billion as against the year-ago period, according to the Ministry of Commerce. While maritime exports were valued at $4.45 billion, imports were registered at $7.82 billion. Compared to the same period in the 2019-2020 fiscal year, imports fell by $3.49 billion, while exports reported a decrease of $1.28 billion. Meanwhile, the value of trade through the border this FY was estimated at $7.18 billion, a decrease of $842.5 million as against a year-ago period.

Myanmar witnessed a slump in exports and imports triggered by the coronavirus pandemic. Both sea trade and border trade dropped amid the coronavirus impacts and the political changes. The neighbouring countries tightened the border security and limited the trading time to contain the spread of the virus. For maritime trade, disruption in the logistic sector, the suspension of some ocean liners and the pandemic-induced container shortage somehow scaled-down the maritime trade. Additionally, the lack of money in circulation due to the closure of private banks decreases economic efficiency, an exporter stressed.

Over the past eight months, the country’s total external trade touched a low of $20.46 billion, which plunged from $26.08 billion recorded in a year-ago period. Myanmar’s sea trade generated $26 billion out of an overall trade value of $36 billion in the last FY2019-2020, the Ministry of Commerce’s statistics indicated. Myanmar exports agricultural products, fishery products, minerals, livestock, forest products, finished industrial goods, and other products. On the other hand, it imports capital goods, consumer goods, and raw industrial materials.  The country currently has nine ports involved in sea trade. Yangon Port is the main gateway for Myanmar’s maritime trade. It includes the Yangon inner terminals and the outer Thilawa Port. 

Source: The Global New Light of Myanmar

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Press release on finding of variant COVID-19 viruses (15-6-2021)

by COVID

While constantly monitoring the outbreak of COVID-19, the Ministry of Health and Sports is especially performing the monitoring of variant COVID-19 viruses. On 3 June 2021, the Defence Services Medical Research Centre of the Ministry of Defence issued the laboratory results for 11 persons with variant COVID-19 — one in Kalay, three in Myeik, four in Mandalay, two in Tamu and one foreign returnee in Yangon.

Variant strains were found as two Alpha and five Delta on variants of concern and four Kappa on variants of interest. These viruses were found in India, the USA, France, Germany, Spain, Ireland and Switzerland. The World Health organization stated Alpha and Delta strains of the variant virus have high speed of further infection and reviewed that it will raise the number of patients to be charged at hospitals and the possibility of increasing the death rate due to severe virus.

Moreover, some vaccines will be weaker than the impact of the virus. As such, it is essential that people strictly abide by the notifications, directives, and work guidelines for prevention and control of COVID-19 issued by the Ministry of Health and Sports to ensure disinfection of the pandemic against themselves, their families and environs.
Ministry of Health and Sport

Source: The Global New Light of Myanmar

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Myanmar border trade value hits $7.19 bln in 2020-2021FY

by TRADING

The total border trade value exceeded US$7.189 billion, down over $842 million in the first nine months of the current financial year compared with the same period last year, according to the Ministry of Commerce.

From 1 October to 4 June of 2020-2021FY, the total border trade amounted to $7.19 billion, a decrease of $842 million compared with the last year’s figure of $8.03 billion. The total border trade value included $4.69 billion in export and $2.49 billion in import. Myanmar has opened 18 border trade camps.

The trade volume at Muse border trade on the China-Myanmar border exceeded $3.66 billion, down over $567 million compared to the same period of the last year. Myanmar’s major export items are agro, animal, marine, forest, industrial finished products, and other products. The country mainly imports capital goods, raw materials, personal goods and CMP products.

Source: The Global New Light of Myanmar

Inflation rate stands at 2.28 per cent in March

by ECONOMY

The annual rate of inflation in Myanmar, based on the Consumer Price Index, fell to 2.28 per cent in March 2021 amidst the depreciation in Kyat value and high fuel price, according to the inflation report released by the Central Statistical Organization, under the Ministry of Planning and Finance. The Kyat weakened in the local forex market in March. Consequently, the imported oil price also surged, causing the price index in the transportation group to rise, the inflation report showed. The consumer price fell in other commodities, tobacco and beverages and clothing groups. At the same time, the CPI spiked in food, non-food, household goods and maintenance, rent, transportation, recreation and culture. The price index of education, health and telecommunication went stable amid the COVID-19, the report stated.

The annual rate of core inflation, which strips out volatile food and energy prices, was six per cent in March 2021. The yearon- year inflation rate stood at 2.64 per cent in March, the inflation data indicated. During the one-year period from April 2020 to March 2021, the inflation rate stood at 6.61 per cent during the coronavirus outbreak in March 2020 owing to the weak demand of consumers and a sharp drop in fuel price. The coronavirus impacts triggered the decline in the consumer price index. It continued slipping to 5.21 per cent in October 2020, 4.6 per cent in November, 3.87 per cent in December, 3.18 per cent in January 2021, 2.61 per cent in February and 2.28 per cent in March, respectively.

In March 2021, Ayeyawady Region recorded the highest inflation rate at 5.99 per cent, followed by Kayin State at 4.37 per cent and Nay Pyi Taw at 4.29 per cent. The rate fluctuated with a maximum rate of 5.57 per cent in the Bago Region and a minimum deflation rate of -0.59 per cent in the Mandalay Region. Earlier, the inflation rate was calculated based on a 2006 survey. The base year was later changed to 2012. The Central Statistical Organization conducted a Household Income and Expenditure Survey in 82 townships in November 2012. The authorities concerned have been making efforts on the basis of policies on finance, currency, trade, and foreign currency control in order to reduce the inflation rate, in keeping with the second five-year National Development plan (2016-2017FY-2020-2021FY).

Source: The Global New Light of Myanmar

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Livestock, fisheries attract five foreign investment projects in seven months

by INVESTMENT

Livestock and Fisheries sector has attracted five foreign investment projects as of April-end in the current financial year 2020-2021 since October, according to the Directorate of Investment and Company Administration (DICA). Those businesses brought in over US$20 million, including the expansion of investments by the existing joint ventures.

They are executing poultry farm, pig farming and sales of pigs, production and farming of broiler and shrimp, as per data of the DICA. Since 1988-1989 FY, about $926.218 million of FDI have flowed into the livestock and fisheries sector. Next, 16 countries have put investment in the livestock and fisheries sector so far.

Among them, Thailand has topped the list of investments, with over $380 million, followed by Singapore with about $130 million. Myanmar’s livestock and fisheries sector are crucial to the livelihoods of many vulnerable households and contribute to improving nutritional outcomes in the country. 

Source: The Global New Light of Myanmar

YCDC planning to build 50 mln euro worth Waste to Energy plant in Htainpin dump site

by ENERGY

Myanmar’s Waste to energy and waste to biogas plant, backed by Poland’s government technology and financial support, will be built in Htainpin dump site in Hlinethaya Township, with the lowest possible environmental impact, according to the Yangon City Development Committee (YCDC). YCDC has projected to build the waste to energy and waste to biogas plant in Htainpin dump site, in cooperation with Poland government. Htainpin dump site has been polluted. This biofuel plant will produce the compressed natural gas CNG and other biofuels which can substitute firewood and reduce water and air pollution, said Dr Aung Myint Maw, director of YCDC (Environmental Conservation and Cleaning Department).

This plant will be constructed with the low-interest loan 50 million euro of Poland government. The Environmental Conservation and Cleaning Department is daily handling more than 2,500 tonnes of garbage, and 1,500 tonnes of garbage is disposed at Htainpin dump site. This biofuel plant will generate CNG from 1,000 tonnes of garbage. Additionally, the Environmental Conservation and Cleaning Department under the YCDC cooperated with the JFE Engineering, which is commissioned by the Tokyo Metropolitan Government, to build the first ever Yangon Waste to Energy Plant. The plant is located on 15 acres of land near Hlawkar Road in Shwepyitha Township, Yangon, and the project cost US$16 million.

The plant burns 60 tonnes of garbage from Mingaladon dump site to generate 760 KW electricity per day. About 400 KW of electricity is used to operate the plant and other 300 KW are fed into Yangon Electricity Supply Corporation (YESC)’s national power grid. Therefore, it can supply about 180 MWh per month. About 2,500 tonnes of solid waste are daily generated in Yangon. At present, Yangon Waste to Energy plant can incinerate only 60 tonnes of waste to generate electricity. As a result of this, the YCDC stepped up to implement the waste to energy and waste to biogas project. Poland government is mulling over it to sign an agreement amid the surging coronavirus cases. They will make concerted efforts to start this project.

Source: The Global New Light of Myanmar