Myanmar Supreme Court Broadens Civil Jurisdiction and Powers of Regional Courts
On 25 April 2025, Myanmar’s Supreme Court issued Notification No. 296/2025, significantly expanding the civil jurisdiction and administrative authority of courts in Self-Administered Divisions, Zones and Districts. This update reverses a 2020 directive and elevates the role of regional courts in the country’s judicial system.
Under the new rules, judges in these courts can now hear original civil cases with claims up to MMK5 billion, increased from previous limits of MMK3 billion for District and Associate District Judges and MMK1.5 billion for Deputies. This change aligns their powers with those of District Civil Courts, enabling more cases to be handled locally.
The expanded jurisdiction also includes authority to hear rent disputes under section 32(1) of the Urban Rent Control Act (1960), a power formerly exclusive to District Judges. Appeals from Township Courts may now be heard by judges in Self-Administered Divisions and Zones, and Associate District and Deputy Judges are authorised to handle civil appeals and revisions when referred by senior judges.
To improve efficiency, judges can now recall, transfer, or reassign cases within and across courts in their regions, allowing for better workload distribution and case management.
Myanmar Implements Regional Comprehensive Economic Partnership Tariff Reductions
On 7 May 2025, Myanmar’s Ministry of Planning and Finance issued Notification No. 29/2025 to implement its Regional Comprehensive Economic Partnership (“RCEP”) Tariff Reduction Schedule based on the Harmonised System (HS) 2017. Previously applied only to China, RCEP benefits now extend reciprocally to imports from Cambodia, Thailand, Vietnam, Brunei, Laos, Singapore, Malaysia, and Indonesia. To enforce this, the Customs Department released Announcement No. 009/2025 on 13 May 2025, allowing eligible imports using “Form RCEP” to claim reduced tariffs. Importers must select “R” for RCEP in the Myanmar Automated Cargo Clearance System (MACCS), which has been updated accordingly. These tariff reductions took effect on 14 May 2025.
Amendment to the Myanmar Registration of Ships Act Enacted
On 5 May 2025, Myanmar’s State Administration Council (“SAC“) enacted an amendment to the Registration of Ships Act 1841 (SAC Law No. 37/2025) to modernise ship registration and strengthen compliance. The amendment requires ships to hold a valid Certificate of Registry issued by a Myanmar port officer, confirming nationality and ownership details. Owners must submit a sworn declaration with detailed ship and ownership information, and proof of ownership may be required. Ownership is restricted to Myanmar citizens and majority Myanmar-controlled entities. New enforcement penalties allows fines up to 10% of the ship’s value, imprisonment of up to 12 months, and possible confiscation of vessels with unclear ownership. A 2016 bill allowing foreign or joint venture registration remains pending and has not yet been enacted.
Changes to Specific Goods Tax Rates under 2025 Union Tax Law
Myanmar has introduced the Union Taxation Law 2025, revising tax rates for specific goods. Notably, taxes on cigarettes, cheroots, liquor, and wine have increased. For instance, the tax on cigarettes now ranges from MMK14 to MMK30 per cigarette, depending on the price tier.
With effect from 1 April 2025, the applicable specific goods tax (“SGT”) rates are as follows: Cigarettes: The SGT per cigarette has risen by MMK1 across all price tiers, now ranging from MMK14 to MMK30 per stick.
- Cheroots: The SGT has doubled from MMK 1 to MMK 2 per unit.
- Liquor: For liquor priced between MMK400 and MMK28,600 per litre, the SGT ranges from MMK261 to MMK6,320 per liter. Liquor priced above MMK28,601 per litre is taxed at 60% of its value.
- Wine: Wine priced between MMK1 and MMK28,600 per litre incurs an SGT of MMK 210 to MMK 5,160 per litre. Wine priced above MMK 28,601 per litre is taxed at 50% of its value.
Myanmar Strives to Promote Electric Vehicle Industry
On 31 March 2025, Myanmar’s Ministry of Planning and Finance issued Notification 27/2025 to promote the electric vehicle (EV) industry by exempting customs duties on Battery Electric Vehicles (“BEVs“) and their essential parts. Effective from 1 April 2025 to 31 March 2026, the zero-duty exemption applies to BEVs powered solely by electric batteries, imported in Completely Built-Up (“CBU“), Completely Knocked Down (“CKD“), and Semi-Knocked Down (“SKD“) formats, as listed in the 2022 Customs Tariff.
Further supporting the automotive sector, Notification 39/2025 was issued on 4 June 2025, introducing significant tariff reductions on vehicles assembled domestically. These changes take effect from 1 June 2025 to 31 March 2026 and cover imports in CBU, SKD, and CKD forms.
Key tariff adjustments are set out below.
- Passenger cars, regardless of engine size, now face zero customs duty for CBU imports, with SKD and CKD rates reduced to 5% and 3%, respectively.
- Trimotors, buses, and trucks benefit from zero CBU duty, with SKD and CKD rates lowered as much as 1.5%.
- Motorcycles, previously taxed at 5% for CBU, now enjoy a 0% CBU rate, while SKD and CKD rates are set at 1.5%.
These tariff reductions aim to make vehicle assembly more affordable and attract both local and foreign investment in Myanmar’s automotive industry. By easing import costs, the Government hopes to boost domestic manufacturing capacity and increase vehicle availability nationwide.
Industry participants are advised to review their import and production plans to take advantage of these incentives before the exemption period and tariff reduction period both end on 31 March 2026.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
