Changes have been announced that relate to the tax applied on medical products entering Myanmar. This was part of the role completed by The Myanmar Pharmaceutical & Medical Equipment Entrepreneurs Association, MPMEEA .
The MPMEEA was established in April 1999, with a number of aims, including to “support and assist the State for success in its health-care works and to work for the improvement of the manufacturers, importers and exporters of medicine & medical equipment in accordance with the medical rules and regulations of the State”.
Up to now a letter of recommendation was required for firms wishing to import medical products. A tax was applied that was calculated on the volume imported with input on the price applicable for tax purposes supplied by the MPMEEA. Over time it was seen that there were variances in prices reported by suppliers. This being, it would seem, to alter the tax liability.
The change now introduced will now mean import tax will be levied following observation of product market prices following market and online research. An approval certificate will still be required from the Food and Drug Administration, (FDA).
This indicates a revised focus for the MPMEEA onto training initiatives in Myanmar for this sector. Anyone visiting a Doctor in Myanmar and receiving prescribed medication will almost certainly see on product labelling that it is imported. This is a huge business creating valuable revenue also for exporters in India and also China, Thailand and elsewhere. Growth is shown to be 12 percent per year and totalled US$450M, according to reported figures for 2015.
These changes will create new rules and opportunities for companies working in the medical sectors and most importantly huge opportunities for further imports of medical supplies.
If you are an international exporter in this field contact us now for further details and learn how you can create your base in Myanmar and create not only brand awareness for your range of products but also new revenue streams and further growth.