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May 25, 2020

Suppression and Eradication of Black Market

In dealing with national problems of variety, knowledge on the actual situation is an initially needed fundamental. Only if we have the full knowledge of the actuality will it be able for us to acquire the right solution in carrying out practically. The fall of Burma Socialist Program Party (BSPP) was attributed to failure to know actual situations under the then party set-up.
In performing the tasks of developing the nation based on the lessons in the past, the UMFCCI (Union of Myanmar Federation of Chambers of Commerce and Industry) are holding (SME Development Strategy, “Issues and Solutions” Forum) to effectively submit suggestions to the Government, with a view to laying down solutions which reflects the actual situations.
The facts on illicit trade submitted at this meeting are assumed to be the ones that should be emphasized with great stress.
The responsible person of the UMFCCI presented at the meeting the facts on illicit trade. In doing so, he made submissions based on the difference between facts on legal trade released by the State and facts on the trade released by trade-partner countries. Cases of the said illicit trade can be found in the trade between Myanmar and Thailand as well as in the trade between Myanmar and China. This was caused by most of Myanmar’s border trade with China and Thailand.
According to the report by the UMFCCI, the amount of import via black market, which was excluded in the statistics of the nation’s legal trade, amounted to US $ 5339 million. In addition, the amount of export via black market, which was excluded in the statistics of the nation’s legal trade, amounted to US $ 10975 million. At the conservative estimate made by the responsible personnel of the UMFCCI, loss of taxes and customs to be levied on the black market will be US $ one billion. Compared to the amount of the legal trade deficit—US $ 5 million, the depth of the amount of US $ one billion can be guessed easily.
In fact, loss of national revenue due to black market exceeds the said amount. Evidently enough, it will be enormously great to lose for the nation, provided that loss of honest and straightforward entrepreneurs and bribery and corruption are taken into consideration. In eradication of deep-rooted and long-lasting practices of black market systematic measures must be made by taking time step by step. I hereby submit my humble suggestion for the State to lay down a all-inclusive strategy consisting all machinery of the country, based on the suggestions made by UMFCCI.

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