Car trade on recovery path

With the tax policy remaining unchanged, car trade has picked up a bit in the last two weeks, according to the automobile market.

A few tax relief measures were incorporated in the draft of the 2018 Union Tax Law. Therefore, dealers were observing the automobile market in the first three months of the calendar year, thus cooling the market. However, no tax relief was announced in the union tax law, which has shaken up the market a bit.

“The automobile market was cool as people were waiting to see if the tax policy would be changed on 1 April. The market picks up a bit when the policy remains unchanged. However, there is no remarkable change in the market,” said Dr Soe Tun, managing director of Farmer Auto Car showroom and chair of Myanmar Automobile Manufacturers and Distributors Association.

During the Thingyan festival, cars such as the pick-up Hijet and those in the price range of Ks10 to Ks50million sell well, saitd car dealers.

“It is some 10 days since the market has recovered. Cars are highly in demand among buyers from outside Yangon. However, the market for the latest models is cool despite the occasional trading,” said U Min Min Maung of MMM Car Sale Centre and chair of Yangon Region Automobile Manufacturers and Distributors Association.
The slip price (import permit) costs the buyer more than Ks11 million, along with the vehicle ownership, while it is worth some Ks10.5 million without the owner status.

Car prices will not drop remarkably owing to the soaring tax rate for imported cars, said U Aung Than Win, chairman of Myanmar Automobile Purchase and Sale Enterprise (Yangon).

“We want the government to show greater tax transparency,” he maintained.

Most of the buyers pay through an installment plan in the automobile market. Some choose new cars, while many still buy second-hand cars.

The Supervisory Committee for Motor Vehicle Import released an official announcement on 16 October that the year 2014 would be set as the limit for the oldest model imported in 2018. Only vehicles with left-hand drive are allowed to be imported under the new policy. The announcement hiked up the slip and car prices.

Source: Global New Light of Myanmar

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