Online vendors in Myanmar are preparing to close their Facebook accounts and halt business after the junta’s Ministry of Commerce announced they must register within six months from July 21.
The junta categorized online selling as an essential service under Section 4 of the goods and services law earlier this month, meaning operators must apply for a registration certificate.
Unregistered sellers face prosecution under Section 5 of the same law, which carries punishment of up to three years in jail and a maximum fine of 500,000 kyats (US$ 238 as per the market rate).
E-commerce in Myanmar has soared since the Covid pandemic, with everyone from ordinary households to celebrities selling goods online. Items offered range from food, clothing and home appliances to jewelry and real estate.
However, some online vendors suspect the cash-strapped junta is seeking new tax revenue for its multi-front war on civilian and armed resistance.
“Most online vendors sell only a small amount of goods and their businesses are not huge. So, if the military regime pressures us, I will stop selling online,” a Yangon-based online food vendor told The Irrawaddy.
Another online vendor who sells cosmetics said that she plans to close her Facebook page because she is worried that the ministry will force registered operators to pay tax.
“They are pushing us into trouble and hardship in various ways. I don’t want to register and I don’t want to contact them because I dislike them,” she told the Irrawaddy.
However, Commerce Minister Aung Naing Oo insisted that the registration order is designed to protect consumer rights following a flood of complaints to the consumer affairs department.
“This order does not prohibit online selling. All online vendors can sell legal goods after registering. Registration must be done online and the fee must be paid. The online sales registration system will be introduced soon,” Aung Naing Oo announced on Facebook.
Registration only takes a few hours and is mandatory for individuals and companies who sell goods online, he added.
“In fact, all online businesses in other countries have to register, pay tax and follow rules and regulations. Myanmar is not doing this alone,” the junta minister said.
With the registration fee yet to be announced, online vendors are monitoring the situation closely before making decisions on their future.
