By Kay Kimsong
THE CAMBODIA DAILY
The National Assembly on Tuesday began debating the draft 2007 budget law amid questions of decreased government revenue and accusations of corruption.
Only one of the law's five chapters, which authorizes spending of $1.1 billion, passed by a vote of 78 of the 96 lawmakers present.
The Assembly's finance and banking committee chairman Cheam Yeap said the entire bill was likely to be approved by the end of today.
Finance Minister Keat Chhon said that his ministry predicts that the 2006 growth rate for Cambodia's GDP would be 9 percent, giving Cambodia a $6.5 billion economy.
Growth should continue at between 6 and 7 percent between 2007 and 2009, he said, noting that last year's growth rate was 13.4 percent.
Calling for the passage of the long-awaited anti-corruption law, SRP leader Sam Rainsy attacked the draft budget law and said tax revenues remained woefully low, while corruption further weakened the state.
"This law is a joke. It doesn't show the real situation of Cambodia at all," he told reporters at the National Assembly following the vote.
He claimed that $300 million in tax revenue was being lost to corruption every year. "There is too much corruption. Large amounts of income went to corrupt officials," Sam Rainsy said, adding that some went into party coffers, mainly those of the ruling CPP.
Funcinpec lawmaker Monh Saphan blamed the weak tax revenue return on the failure to tax all companies alike.
"I’ve noted that of 3,000 businesses, the tax department collected taxes from only half," he said.
Keat Chhon defended the government and the draft law, and denied Sam Rainsy's accusations.
Weak tax revenues are due to the government's decision not to tax agricultural imports such as equipment and fertilizer, Keat Chhon said, as well as to gasoline subsidies, which amount to $90 million annually.
Only one of the law's five chapters, which authorizes spending of $1.1 billion, passed by a vote of 78 of the 96 lawmakers present.
The Assembly's finance and banking committee chairman Cheam Yeap said the entire bill was likely to be approved by the end of today.
Finance Minister Keat Chhon said that his ministry predicts that the 2006 growth rate for Cambodia's GDP would be 9 percent, giving Cambodia a $6.5 billion economy.
Growth should continue at between 6 and 7 percent between 2007 and 2009, he said, noting that last year's growth rate was 13.4 percent.
Calling for the passage of the long-awaited anti-corruption law, SRP leader Sam Rainsy attacked the draft budget law and said tax revenues remained woefully low, while corruption further weakened the state.
"This law is a joke. It doesn't show the real situation of Cambodia at all," he told reporters at the National Assembly following the vote.
He claimed that $300 million in tax revenue was being lost to corruption every year. "There is too much corruption. Large amounts of income went to corrupt officials," Sam Rainsy said, adding that some went into party coffers, mainly those of the ruling CPP.
Funcinpec lawmaker Monh Saphan blamed the weak tax revenue return on the failure to tax all companies alike.
"I’ve noted that of 3,000 businesses, the tax department collected taxes from only half," he said.
Keat Chhon defended the government and the draft law, and denied Sam Rainsy's accusations.
Weak tax revenues are due to the government's decision not to tax agricultural imports such as equipment and fertilizer, Keat Chhon said, as well as to gasoline subsidies, which amount to $90 million annually.
2 comments:
Keat Chhon has so much lies.
Incapable person... but Hun Sen likes him because he serves him Well...
You know that this guy stubles speaking khmers during N/A discussions.
You believe that?
There too many hole in the CPP government tax pockets year after year.
It hard for Cambodia... to have a corrupt government who know nothing about planning for Cambodia future. GDP is good only if the pocket is sealed and that tax collected is put to solid projects not lip service projects that Hun Sen and the CPP has been giving for years.
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