Months after the government allowed the import of foreign liquor, it has announced a de facto amnesty for stockpiles of liquor already imported. The Internal Revenue Department is allowing retailers to legitimize their liquor stores by paying a tax of 60% of its retail value, the Myanmar Times reported.

The move is designed to draw tax revenue and represents the latest step in the process of legalizing alcohol imports and dissolving one of Myanmar’s largest grey markets. Over the past five years, the government has allowed foreign beer makers to operate in the country, allowed foreign liquor companies to invest in local brands, legalized wine and beer imports, and finally, legalized imported hard liquor. Before these measures, imported alcohol has been (and continues to be) carried over Myanmar’s porous land borders. Additionally, hotels (which have been excepted from the import ban) would commonly sell their excess stock to local retailers.

Yet it remains to be seen if the new legitimate marketplace will actually replace this longstanding grey market. If grey market sellers do not have a strong market or legal incentive to legitimize their stock, they may choose to simply ignore the new tax amnesty. Furthermore, local sellers will likely require similar incentives to import merchandise through legitimate channels.