The Myanmar authorities have taken measures to crack down on sale of illegally imported food items in domestic markets, designating April 1 next year for some of the items on sale in supermarkets to bear tax-clear stickers, the local journal Voice reported Wednesday.

Food items such as liquor, beer, cigarette and other wine will be initially set to do so in stores and bazaars, in addition to supermarkets, in order to open green light for legally imported ones for competing in the markets in terms of prices, the report quoted the Finance Ministry as saying.

Following liquor, beer and cigarette, there will come beverage as another phase of implementation, the report added.

Previously, some food items illegally imported across border to evade tax, were sold at lower prices than legally imported ones which were already taxed, thus affecting not only the latter's market competitiveness but also reducing the state revenue income, merchants said.

According to the ministry, import tax varying from zero percent to 200 percent are levied on imported goods, of which liquor and cigarettes are taxed at the highest rate.

Observers commented that tax evasion is critical and widespread in Myanmar.

The ministry statistics show that the country gained 400 billion Kyats (about 363 million U.S. dollars) in revenue in the fiscal year of 2005-06 which ended in March, a significant increase over the previous years but much lower than targeted, local media said.

Collected through five categories of tax -- income tax, profit tax, commercial tax, the sale of stamps and the state lottery, the country's revenue obtained ranged from 104 billion Kyats to 265 billion Kyats in the past three years.

The department attributed the lower figures to tax evasion, blaming some companies and individuals for presenting false data about their income for taxation assessment as well as the government's ineffective measures in collecting tax from companies, service providers, restaurants, supermarkets or individuals for 18 years.

However, the finance authorities held that the recent amendments to income and commercial tax laws would not affect the tax rate levied by the government but would ensure that tax collection policy will be more effective and widespread.

Meanwhile, Myanmar is introducing a new measure soon, aiming at preventing private companies doing business in the country from tax evasion.

The biennial renewal of business licenses of companies will be granted only on full settlement of their profit tax levied on them annually.

Source: Xinhua