The department issued the instruction to clarify disputes among phone importers and retailers after the taxes were announced earlier this year.
The ruling means that retailers collect taxes from the buyers and then repay this to the IRD. However, the tax does not necessarily apply to all brands.
“As Samsung pays import fees as well as other tariffs and taxes imposed by the government, buyers need not pay additional taxes. There will be no price hike on Samsung products,” said Ko Zarni Win Htet, Samsung Myanmar’s head of IT and Mobile Group.
For other local distributors though, the additional taxes, are likely to have a negative impact on sales.
U Ko Ko Aung, CEO of phone retailer Lu Gyi Min, said that he accepts the tax and it should be explained to the consumers. He added though, that the government should ensure that all retailers obey the system.
“If some shops follow the law and some don’t, market competition is not fair. The government should ensure law enforcement and encourage all to follow the law,” he said.