Vehicle tax collection begins next month
A vehicle tax is to be collected next month after a one month lapse due to the national election, the Ministry of Economy and Finance said Wednesday.
“We expect that after the suspension, tax collection will be highly increased compared to last year because … drivers are well-informed,” Sim Eang, director of tax department of Economy and Finance Ministry, told the Mekong Times.
Tax collection last year took place from June to August but many chose to scorn the official tax discs, instead relying on their ability to bribe or flee from police.
“This year we will disseminate information about tax collection … on radio and TV so that the information can be reach to all people across the nation,” Sim Eang said.
Taxes range from 4,500 riel (US$1.10) to 180,000 riel (US$44) per year.
There were over 800,000 registered vehicles in Cambodia last year, with taxes worth “thousands of millions of riel” collected, according to a Tax Department statement.
However no concrete total for tax revenues in 2007 was offered by the Tax Department Wednesday, even when directly asked.
Chan Sophal president of the Cambodian economic Association, said that demands from infrastructure projects mean Cambodia must strengthen its tax collection. “I think the government will lack a budget if its tax base is not expanded because, in the past, revenue from tax is still a low proportion of GDP.”
Tax revenues make up only 11 percent of Cambodia’s GDP, according to Chan Sophal, lower than the Asean average, which stands at around 16 percent.
Source: The Mekong Times
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
I’ve been reading along for a while now. I just wanted to drop you a comment to say keep up the good work.