2026 Union Tax Law and Its Key Takeaways

The Union Tax Law 2026 (“UTL 2026”) was enacted on 15 March 2026 by the State Administration Council (“SAC”) and is applicable for the financial year 2026–2027 (1 April 2026 to 31 March 2027). The UTL 2026 takes effect on 1 April 2026.

Overall, the UTL 2026 retains most provisions from the UTL 2025, with key changes mainly in Specific Goods Tax (“SGT”) rates for certain goods and the removal of Battery Electric Vehicles (“BEVs”), batteries and its components from the Commercial Tax (“CT”) exemption goods list.

Below is a summary of the key changes in the 2026 UTL:

Changes in specific goods tax rates

The SGT rates for cigarettes, cheroots, liquor, and wine have been increased

• Cigarettes and cheroots:
  • SGT increased by MMK 1 per unit.
• Liquor:
  • Lowest price range: MMK 700–2,500 per liter, SGT of MMK 287 per liter.
  • Highest price range: MMK 37,401 per liter and above, SGT of 60% of the value per liter.
• Wine:
  • Lowest price range: MMK 700–3,500 per liter, SGT of MMK 250 per liter.
  • Highest price range: MMK 30,101 per liter and above, SGT of 50% of the value per liter.

Differences Between the 2026 UTL and 2025 UTL in Respect of the SGT Rates

Type of Specific Good	The 2026 UTL		The 2025 UTL
	Different Tiers ranging from:	SGT Rates	Different Tiers ranging from:	SGT Rates
Cigarette	MMK1,000 and below –MMK2,001 and above per pack of 20 cigarettes	MMK15 – MMK 31 per cigarette	MMK800 and below –MMK1,101 and above per pack of 20 cigarettes	MMK14 – MMK 30 per cigarette
Cheroot		MMK 3 per cheroot		MMK 2 per cheroot
Liquor	MMK 700 to MMK 37,400 per liter; and MMK 37,401 per liter and above	MMK 287 to MMK 6,952 per liter; and 60% of value per liter	MMK 400 to MMK 28,600 per liter; and MMK28,601 per liter and above	MMK 261 to MMK 6,320 per liter; and 60% of value per liter
Wine	MMK 700 to MMK 30,100 per liter; and   MMK 30,101 per liter and above	MMK 250 to MMK 5,676 per liter; and    50% of value per liter	MMK 1 to MMK 28,600 per liter; and   MMK 28,601 per liter and above	MMK 210 to MMK 5,160 per liter; and    50% of value per liter

Tax rates for battery electric vehicles

In accordance with Amendment UTL 2022, the BEVs and their batteries were included in the exemption list from SGT and CT starting from 1 October 2022.

However, under UTL 2026, BEVs are no longer included in the exemption list and are therefore subject to 5% SGT. The SGT list refers only to vehicles powered solely by batteries and does not include related parts specifically used in BEVs (such as batteries and components). Therefore, SGT applies only to the BEVs themselves.

Regarding the Customs Duty upon importation, according to the Ministry of Planning and Finance Notification No. 19/2026 dated 2 February 2026, the CD rate is set at 0% for certain battery electric vehicles, machinery, and related components.   

Under this notification, imports of battery electric special-purpose vehicles, battery electric industrial machinery, and related components listed are eligible for a 0% CD rate. To qualify for this exemption, the imports must be supported by technical recommendations from the Ministry of Electric Power and a recommendation from the Ministry of Industry.

This exemption is valid only from 2 February 2026 to 31 March 2026, and no further notification has been issued, as confirmed in our discussion with the Customs Department. Therefore, it is highly likely that CD will also apply to the BEVs and their related components based on their HS codes from 1 April 2026 onward. We will provide an update if any further notifications are issued by the Customs Department.

Changes in commercial tax rate and exemptions

Under the 2026 UTL, CT rate remains unchanged at 5% for all goods and services subject to CT. However, goods previously included in the CT exemption list, such as two- and three-wheeler BEVs, BEV batteries, and related components specifically used in BEVs, have been removed from the exempt list and are now subject to 5% CT under the UTL 2026.

The CT exemption for battery charging services for BEVs, however, remains unchanged and continues to be included in the exempt CT service list.  

Conclusion

In the 2026 UTL, only a few changes were introduced, primarily the increase in SGT rates for cigarettes, cheroots, liquor, and wine. Additionally, BEVs are now subject to 5% SGT, and two- and three-wheeler BEVs, BEV batteries, and related components specifically used in BEVs are now subject to 5% CT. The rates for Corporate Income Tax, Personal Income Tax (including salaries of non-resident Myanmar citizens), Capital Gains Tax and Jewellery Tax remain unchanged.     

It is important to note that the tax rates and exemptions under the 2026 UTL are applicable only for the period from 1 April 2026 to 31 March 2027.