Government revenue from taxing permit-free cars has climbed up to Ks80m (US$67,480) starting from 1 June because the Union government has imposed an advanced income tax on permit-free cars.
There are now over 70 permit-free cars on that advanced income tax has been paid. Those paying taxes on their vehicle have gradually risen from 2 June. Cars that taxes were paid are mostly seen to of a lower engine capacity, said an official from Internal Revenue Department.
Taxes also targeted cars that have number plates that are not from Yangon. After advanced income tax is levied on cars, the number of permit-free cars remarkably declines.
Trading of the cars with low engine power has dropped in the local car market because of the ban on Yangon’s free permit and income tax payment.
After imposing the tax, the price of the cars with 1300CC and 1500CC has risen. As a result of this, the number of buyers has decreased. The car market will still be cool this month because of Yangon’s free permit ban, said U Zaw Lay, a car dealer.
The price of cars with 1300CC has risen by Ks1m (US$843) while cars with 1500CC by Ks2m (US$1,687) in the car market.