The Myanmar authorities have taken a new measure to crack down on sale of illegally imported food items in domestic markets, local Flower News reported on Monday.

The designated food items cover liquor, beer, cigarette, wine and purified water, the report quoted the Finance and Revenue Ministry as saying, adding that the measure also applies to locally produced ones to identify tax-clear status.

Previously, some illegally imported across border evading tax, were sold at lower prices than legally imported ones which were already taxed, thus affecting not only the latter's market combativeness 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 cigarette is 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 2005-2006, a significant increase over the previous year but much lower than targeted, the 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 three previous 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 aimed 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 English)