Impacts of Export Tax Implications on Sesame in Myanmar

บทคัดย่อ

Export tax as a price control has been imposed on agricultural products of Myanmar. Sesame, one of the high potential export commodities from Myanmar, is also distorted by government export tax policy to shrink the volume of trade. This study investigates the impacts of imposing export tax on sesame seed trade under the assumption of dominant exporting country. To understand the closely related market nature, sesame market structure is estimated using simultaneous equations. Partial equilibrium view of policy simulation is further examined for clarification of alternative policy impacts (10%, 8%, and 5% export tax) on market participants. Simulation results report that current export tax causes the consumer surplus in both direct consumption and crushing sectors. A part from this it shows the best results not only in government revenue but also in society surplus. The recommendation can therefore be drawn out of this study that the export volume should not totally be banned and the export tax should not be totally eliminated for this commodity. Moreover, the tax revenue should be used in sesame industry improvement.