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Solar products exempted from customs duties

26 April 2023

The Ministry of Planning and Finance has exempted “solar and related components” from customs tariffs, according to a notification dated 20 April. 

Qualifying products include the following: 

  • Solar panels
  • Solar charge controllers
  • Solar powered inverters (string, combined battery, dual-use, main)
  • Household solar inverters (roof and on-ground installation)
  • Solar energy installation systems (installation on water)
  • Solar controller
  • Batteries 

The notification is effective from 1 April. 

The exemption announcement comes as the Yangon Electricity Supply Enterprise and Naypyitaw Electricity Supply Enterprise have announced that they will purchase excess power generated by owners of distributed solar power systems (see separate story). 

We note that in late February, the military-appointed Myanmar Investment Commission (MIC) also waived taxes on the production and distribution of renewable energy. 

The announcement listed the following as investment-promoted sectors:

  • Production and distribution of renewable energy for electricity generation
  • Electricity generation and distribution of natural gas or biogas
  • Electricity generation and distribution from the non- hazardous waste
  • Electricity generation and distribution of combined energy (gas and thermal energy)
  • Solar and wind power generation and distribution

Companies investing in renewables, which is a promoted sector, will also be exempted from or pay reduced taxes on imported materials, including machines, equipment, spare parts and construction materials not available in Myanmar.  

The exemptions are an effort to encourage investment in the sector amidst worsening blackouts, though it is unclear whether they will successfully pique investors’ interest, given the generally poor business environment in the country.