investment

The Mirror, Vol.13, No.641

“Phnom Penh: Government officials and parliamentarians from the Cambodian People’s Party explained in detail the regulations for setting of taxes on land and houses, and the increase of road taxes in 2010. This decision is part of the decisions for the national budget for 2010 which the National Assembly discussed and approved on Monday 30 November 2009.

“Defending the national budget draft for 2010, officially known as a financial management law for 2010, during the parliament session on Monday morning, the Minister of Economy and Finance, Deputy Prime Minister Keat Chhon, said that the increase of road taxes and the collection of taxes for real estate including land, houses, buildings, and constructions are a measure to seek additional income while Cambodia is encountering an economic and financial crisis.

“Deputy Prime Minister Keat Chhon added that measures of the government to create taxes on land and houses is not expected to bring in much here in Phnom Penh, because there are 180,000 houses from which only US$3 million to US$9 million can be made. This tax collection will surely be made from high ranking officials and rich people, but it does not have an impact like the tax rates of land and houses in foreign countries, where up to 1% of the total value is charged. In our country, it is only 0.1%. The government will use it to reduce the state support of resources to under national levels and to expand taxation culture which is a movement for direct tax income in the future.

“Deputy Prime Minister Keat Chhon stressed that this new tax was created after proper studies, by an assessment committee, but it is not to frighten the people.

“This statement of the Minister of Economy and Finance is a defense and a response to the criticism of Sam Rainsy Party parliamentarians when the parliament begun discussing to approve a draft of the national budget for 2010.

“The total national budget for 2010, about US$2 billion, was criticized by the Sam Rainsy Party because of the increased expense allocated for national defense and security, which amounts to about US$274 million, while expenses allocated for agriculture and contributing to the development of the national economy were increased by only 5%.

“Sam Rainsy Party parliamentarians also opposed the policy to collect land and house taxes, and to augment road taxes from automobiles, which is proposed as a measure to increase income for state expense in 2010.

“Parliamentarian and spokesperson of the Sam Rainsy Party, Mr. Yim Sovann, said during the parliament session that to augment road taxes and the collection of land and house taxes are strange moves and cannot be supported. Both the rich and the poor cannot cry during the economic crisis at present, because their houses and their land cannot be sold, and some even are indebted to banks.

“The parliamentarian Yim Sovann suggested that the government should try to be brave to collect other taxes, like from visits to the Angkor Wat Temples [contracted to a private company], from forest exploitation, from land contracted out as economic concession land, and to monitor the selling of state property, so that it becomes transparent. Doing so, the state will have increased income and does not need to collect taxes from houses and to increase the road tax.

“The National budget law for 2010 says that taxes will be collected from real estate such as land, houses, buildings, constructions, and others, with a value over Riel 100,000,000 [approx. US$25,000]. The tax will be collected annually at a rate of 0.1% of the total value of the real estate. But the tax excludes agricultural land, and land and buildings of the government, of communities, or individuals who serve religious or humanitarian activities. But houses for normal citizens must pay taxes.

“The budget law for 2010 foresees also an increase of taxes on means transportation including automobiles (road taxes):

1. Vehicles with a power over 12 HP to 17 HP, within 5 years from their production date, have to pay Riel 500,000 [approx. US$125] each year, and after the 5th years, it is Riel 360,000 [approx. US$90].
2. Cars with a power over 17 HP to 24 HP, within 5 years from their production date, have to pay Riel 1,600,000 [approx. US$400], and after the 5th year, it is Riel 1,200,000 [approx. US$300].
3. Cars with a power over 24 HP, like Lexus’ and Land Cruisers, had to pay only Riel 1,000,000 [approx. US$250] for road tax in the previous year, but next year, they will be charged Riel 2,000,000 [approx. US$500].
4. As for passengers’, general transportation, and tourists’ cars with a power of 12 HP, and small motorbikes, their taxes are kept at the same level.

“However, 106 parliamentarians among 109, who were present during the session on Monday morning, raised their hand in favor of the overall content to accept the draft of the national budget for 2010 to be discussed and approved. The Parliament session continued until Monday afternoon, and the parliament plans to continue to discuss the national budget law, which consists of 6 chapters and 20 articles, on Tuesday morning.” Rasmei Kampuchea, Vol.17, #5061, 1.12.2009

Newspapers Appearing on the Newsstand:
Tuesday, 1 December 2009

Deum Ampil, Vol.3, #350, 1.12.2009

• The Prime Minister Ordered All State Institutions and Provincial Authorities to Review All Agreements with the Siamese [Thai] Government
• More Than 40 Persons from Civil Society Organizations of Cambodia Will Attend the Geneva Meetings [on 1 December 2009, of the UN Human Rights Council, of the first Universal Periodic Review of human rights practices in Cambodia]

Kampuchea Thmey, Vol.8, #2112, 1.12.2009

• Samdech Dekchor Considers [Thai prime minister] Abhisit Vijjajiva and [Thai foreign minister] Kasit Piromya as Evil Persons for Cambodia [but he proclaimed to support all Thai investors]
• Samdech Hun Sen Warned Members of the Royal Family Who Speak Publicly Affecting the King’s health
• The Odor of a Decaying Body of a Woman Was Found in the Forest, and It Is Assumed that it is a Case of Rape Murder [Kandal]

Khmer Machas Srok, Vol.3, #543, 1.12.2009

• [Prime Minister] Hun Sen Got Angry with [the Thai Minster of Foreign Affairs] Kasit Piromya after [the Thai Prime Minister] Abhisit Vijjajiva Rejected Negotiations to Restore Diplomatic Ties [as long as the convicted and fugitive former Thai prime minister Thaksin Shinawatra is an official adviser to the Cambodian government

Koh Santepheap, Vol.42, #6819, 1.12.2009

• Samdech Dekchor: Agreements with Thailand Were Suspended, and Even Scholarships for Students Were also Suspended, so that Nobody will Owe Any Gratitude to Thailand
• Illegal Loggings Still Exist without Any Effective Measures to Prevent Logging in Kompong Thom

Phnom Penh Post [Khmer Edition], Vol.1, #57, 1.12.2009

• The Khmer Prime Minister Warned Thai Leaders Not to Look Down on Khmers, and He Suspended all Aid from the Government of [Thai Prime Minister] Abhisit Vijjajiva
• [Former Khmer Rouge leader] Nuon Chea’s Lawyer [Mr. Michael Pestman] Asked the Court to Investigate the Prime Minister for Political Interference [in the Khmer Rouge Tribunal; Mr. Pestman said that Mr. Hun Sen had told all witnesses not to cooperate with this tribunal, accusing Mr. Hun Sen of committing a criminal mistake, which seriously affects legal investigations by this court]

Rasmei Kampuchea, Vol.17, #5061, 1.12.2009

• Samdech Hun Sen: [Thai Prime Minister] Abhisit Vijjajiva Should Stop Finding Ways to Press Cambodia
• The Government Explains Land and House Taxes and the Road Taxes’ increase
• A Car Struck a Motorbike, Killing One and Injuring Three [Phnom Penh]

Sereypheap Thmey, Vol.17, #1823, 1.12.2009

• Vietnamese Garments with Cambodian Labels [“Made in Cambodia”] to Be Exported to America Are Found [to exploit the Cambodian export quote limits from Vietnam

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