2025 Union Tax Law and Its Key Takeaways

The Union Tax Law 2025 (“UTL 2025”) was enacted on 31^st March 2025 by the State Administration Council (“SAC”). It is applicable for the financial year (“FY”) 2025-2026 (1^st April 2025 to 31^st March 2026). The 2025 UTL takes effect on 1 April 2025. Key revisions include an increase in specific goods tax rates on cigarettes, cheroots, liquor, and wine.

Below is a summary of the key changes in the 2025 UTL:

Increase in Specific Goods Tax Rates

In the 2025 UTL, the Specific Goods Tax (“SGT”) rates for cigarettes, cheroots, liquor, and wine have been increased.

• The SGT rate for cigarettes and cheroots has increased by 1 MMK per unit.
• For liquor, the lowest price range subject to SGT is MMK 400 – MMK 2,200, with an applicable SGT rate of MMK 261 per liter. The highest SGT rate of 60% of the value per liter applies to liquor priced at MMK 28,601 per liter and above.
• For wine, the lowest price range subject to SGT is MMK 1 – MMK 2,000, with an SGT rate of MMK 210 per liter. The highest SGT rate of 50% of the value per liter applies to wine priced at MMK 28,601 per liter and above.

Differences Between the 2025 UTL and 2024 UTL in Respect of SGT Rates

Type of Specific Good	The 2025 UTL		The 2024 UTL
	Different Tiers ranging from:	SGT Rates	Different Tiers ranging from:	SGT Rates
Cigarette	MMK800 and below –MMK1,101 and above per pack of 20 cigarettes	MMK14 – MMK 30 per cigarette	MMK800 and below –MMK1,101 and above per pack of 20 cigarettes	MMK13 – MMK 29 per cigarette
Cheroot		MMK 2 per cheroot		MMK 1 per cheroot
Liquor	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	MMK 400 to MMK 24,000 per liter; and MMK 24,001 per liter and above	MMK 237 to MMK 5,745 per liter; and 60% of value per liter
Wine	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	MMK 1 to MMK 22,100 per liter; and MMK 22,101 per liter and above	MMK 176 to MMK 4,532 per liter; and 50% of value per liter

Changes in Commercial Tax Imposition and Exemptions

Under the 2025 UTL, the Commercial Tax (“CT”) rate remains unchanged at 5% for all goods and services subject to CT.

However, certain goods have been removed from the CT exemption list: Pure gold, including gold bars (standard gold bars, gold blocks, and gold coins), will now be subject to a 3% CT rate, in accordance with the amended 2024 UTL.

Conclusion

In the 2025 UTL, only a few changes were made, primarily the increase in SGT rates for cigarettes, cheroots, liquor, and wine. The rates for corporate income tax, personal income tax (including income tax on salaries of non-resident Myanmar citizens), capital gains tax, and jewellery tax remain unchanged from the 2024 UTL and its amendment dated 28 August 2024. It is important to note that the tax rates and exemptions in the 2025 UTL are applicable only for the period from 1 April 2025 to 31 March 2026.