Saturday, June 17, 2006

Tax Holiday Extended, Bond Market Approved

Saturday-Sunday, June 17-18, 2006

By Erik Wasson and Kay Kimsong
The Cambodia Daily


The Council of Ministers on Friday extended the corporate tax holiday on garment and textile factories by two years to companies registered before March 14, 2005 and also sent a draft law on a bond market to the National Assembly. Under the Law on Investment, companies can receive holidays of up to nine years before having to pay a 20 percent corporate tax, and many garment factories were approaching their deadlines. "The purpose of extending two years tax-free to the garment and textile industry is to ensure political, social and economic sustainability," the cabinet announced in a statement. "In view of the strong competition we are about to face when Vietnam joins the [World Trade Organization] this is really helpful," said Van Sou Ieng, president of the Garment Manufacturers Association. He said that about 180 garment factories were approaching the end of their tax holidays. "If we collect tax, the garment industry will have difficulty competing with China and Vietnam," said Finance Ministry Secretary of State Chea Peng Chheng.

No comments: