On 4 June 2025, the Ministry of Planning and Finance under the State Administration Council issued Notification 39/2025 (“Notification”), which reduces the import tariffs for locally manufactured fuel-powered vehicles. This applies specifically to vehicles assembled under the Semi-Knocked Down (SKD) and Completely Knocked Down (CKD) systems. According to the Notification, the tariff on Completely Built-Up (CBU) units has been entirely eliminated. The revised tariffs will be effective from 1 June 2025 to 31 March 2026.
This measure, as approved by the Myanmar Investment Commission, is aimed at supporting economic recovery and promoting the growth of micro, small, and medium enterprises engaged in the local assembly of vehicles.
Please see the key tariff changes outlined below.
| Type of Vehicles | Previous Rates | Reduced Rates (Starting 1 June ) | ||||
| CBU | SKD | CKD | CBU | SKD | CKD | |
| Cars (2000 CC and below) | 30% | 7.5% | 5% | – | 5% | 3% |
| Cars (2001 CC and above) | 40% | 7.5% | 5% | – | 5% | 3% |
| Trimotor Vehicles (Passengers) | 20% | 7.5% | 5% | – | 3% | 1.5% |
| Trimotor Vehicles (Cargo) | 10% | 7.5% | 5% | – | 3% | 3% |
| Buses | 10% | 7.5% | 5% | – | 3% | 3% |
| Trucks/Trucks for Body Assembly | 10% | 7.5% | 5% | – | 3% | 3% |
| Motorcycles | 5% | 3% | 3% | – | 1.5% | 1.5% |
Key Takeaways for Businesses
Entities engaged in local vehicle assembly or importation under the SKD and CKD schemes may now benefit from lower customs duties, offering cost savings and greater competitiveness in the local market. Furthermore, the reduced amounts reflect a zero tariff for CBU units. Therefore, businesses are encouraged to review their import plans and assess how these tariff reductions can be leveraged within the specified period.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
