Click here to read the original letter in KhmerKingdom of Cambodia
Nation – Religion – King
National Assembly
Phnom Penh, 14 November 2007
To H.E. Keat Chhon
Minister of Economy and Finance
Subject: Request for appropriate measures to lower the retail price of gasoline in Cambodia.
As Your Excellency is well aware of, the retail price of gasoline sold along the streets in Cambodia is much higher than those in neighboring countries. The list below indicates the price of 1 liter of gasoline sold on 14 November 2007:
May I add that:
- Measure # 1 will help end gasoline smuggling which is endemic and reaches a very high level in Cambodia because our taxes are much higher than those in neighboring countries and because of rampant corruption. Due to smuggling, a large portion on taxes on gasoline do not end up in the State coffer, but instead they end up in the pockets of corrupt people who benefit from the support from powerful government officials. Following the lowering of gasoline taxes as proposed above, those who have been smuggling will have no more incentive to continue their illegal activities, and on the other hand, the lower taxes will be collected on the entire volume of gasoline imported into Cambodia. Therefore, the state will collect more revenues than before [a lower tax rate applied to a larger volume produces more revenues for the State than a high rate applied to a much smaller volume due to large-scale smuggling], while the population can buy gasoline at a lower price than before. Only the corrupt people who have been involved in smuggling will incur income losses, but the government should not protect these dishonest companies and businessmen.
Furthermore, may I remind Your Excellency that when crude oil price and gasoline price increase on the international market, States usually lower taxes on gasoline, just like what the Vietnamese government did recently.
- Measure # 2 is aimed at lowering the excessive profit margin of retail companies which are colluding to fix the selling price as high as they please, by choking off consumers. I am not talking about foreign companies (Total and Caltex/Chevron) which are paying the proper amount of taxes to the State, but I am pointing at some of the Cambodian companies (Tela and Sokimex) which are backed by powerful government officials, which are involved in smuggling and corruption and which are exploiting the hardworking people any way they want.
It is regrettable that, in current Cambodia, workers receive relatively low salaries, yet the price of goods are very high in comparison to those in neighboring countries where workers receive much higher salaries than ours, and the price of goods are much lower than in our country.
Trusting that Your Excellency will take the appropriate and fair measures as requested above, I convey to Your Excellency my sincere regards.
(Signed) Sam Rainsy
Member of Parliament
CC:
- Office of His Majesty the King
- Council of Ministers
- National Assembly Secretariat
- National and international Media
- Archive
To H.E. Keat Chhon
Minister of Economy and Finance
Subject: Request for appropriate measures to lower the retail price of gasoline in Cambodia.
As Your Excellency is well aware of, the retail price of gasoline sold along the streets in Cambodia is much higher than those in neighboring countries. The list below indicates the price of 1 liter of gasoline sold on 14 November 2007:
- Cambodia: 4,400 riels
- Thailand: 3,658 riels (1 liter costs 31 Baths; 1 Bath is equivalent to 118 riels)
- Vietnam: 2,877 riels (1 liter costs 11,600 Dongs; 1,000 Dongs are equivalent to 248 riels).
- Measure # 1: Lowering taxes on gasoline from over 1,000 riels per liter to 300 riels per liter.
- Measure # 2: Lowering the profit margin of gasoline distributors from more than 500 riels per liter to 200 riels per liter.
May I add that:
- Measure # 1 will help end gasoline smuggling which is endemic and reaches a very high level in Cambodia because our taxes are much higher than those in neighboring countries and because of rampant corruption. Due to smuggling, a large portion on taxes on gasoline do not end up in the State coffer, but instead they end up in the pockets of corrupt people who benefit from the support from powerful government officials. Following the lowering of gasoline taxes as proposed above, those who have been smuggling will have no more incentive to continue their illegal activities, and on the other hand, the lower taxes will be collected on the entire volume of gasoline imported into Cambodia. Therefore, the state will collect more revenues than before [a lower tax rate applied to a larger volume produces more revenues for the State than a high rate applied to a much smaller volume due to large-scale smuggling], while the population can buy gasoline at a lower price than before. Only the corrupt people who have been involved in smuggling will incur income losses, but the government should not protect these dishonest companies and businessmen.
Furthermore, may I remind Your Excellency that when crude oil price and gasoline price increase on the international market, States usually lower taxes on gasoline, just like what the Vietnamese government did recently.
- Measure # 2 is aimed at lowering the excessive profit margin of retail companies which are colluding to fix the selling price as high as they please, by choking off consumers. I am not talking about foreign companies (Total and Caltex/Chevron) which are paying the proper amount of taxes to the State, but I am pointing at some of the Cambodian companies (Tela and Sokimex) which are backed by powerful government officials, which are involved in smuggling and corruption and which are exploiting the hardworking people any way they want.
It is regrettable that, in current Cambodia, workers receive relatively low salaries, yet the price of goods are very high in comparison to those in neighboring countries where workers receive much higher salaries than ours, and the price of goods are much lower than in our country.
Trusting that Your Excellency will take the appropriate and fair measures as requested above, I convey to Your Excellency my sincere regards.
(Signed) Sam Rainsy
Member of Parliament
CC:
- Office of His Majesty the King
- Council of Ministers
- National Assembly Secretariat
- National and international Media
- Archive
15 comments:
Alright! AH Keat Chhon and here is the fucken formula to lower the gas price to help alleviate the hardship of dirt poor Cambodian people! It is about time that you take some concrete actions regarding the gas hike in price!
Dirt poor Cambodian people are not rich like you! I can’t believe that your mother fucker needs to be told to get something done right! Is your accountability with the Vietcong middleman or is it with the Cambodian population?
Now go do the right thing before I knock that smile out of your face!
Bravo Sir Samrainsy!!!!We are great for you!!!we are with you!!we hope that the general election 2008 Thé Samrainsy will win!!!Bravo Samrainsy!!!!!
this Keat Chhon is a minister in every regime in Cambodia,Sihanouk, Khmer Rouge, Hun Xen. This kind of person is very dangerous.....a snake.....sitting on the fence....should be throwned in jail, he's done nothing for cambodia except for himself and his family, unfortunately for cambodian standard some think he's smart. He's got to go.
There goes the loud mouth (Ah Sam Rainsy) again!
How can we compete with Vietnam who produce their own oil for their own citizens? This is like trying to compete with the Saudi directly.
Go back west motherfucker (Ah Sam Raishit)!
Any plan or protest to bring down gasoline price should be welcomed and supportted because it will benefit for the publics except a few middle men. In the US when gas goes up unreasonable price, the Gongress have sommoned the secretary of Energy and the Oil Campanies's CEOs to answer and explain to the publics. But Cambodia, we have seen only the opposition party members who frequently raises this question. All MPs should work together on this issue regardless of their political affiliation, for it is the common problem for all Cambodian people.
Well, we don't want to waste time talking to idiots. We preferred to use our times on making Khmer oil affordable once we get it out of the ground.
I strongly support Mr. Samransy formular. One guy just said that we compete with vietname or Saudy. How much English knoledge do you have? Lowering the price of gasoline does not do anything with oil production. Look again at Mr. Samransy's formular.
To 5:53AM!
What you have said is so true! I had been observing this mother fucker for a long time! This mother fucker only care about himself and his family!
This mother fucker should stand trail too! Do not let this golden opportunity pass by and pull his fucken head to the United Nations Khmer Rouge trial too!
To 9:17AM & 10:20AM! Fucken clown!
Once Cambodia gets the oil from the ground and makes it affordable? Ahahhahah!
It doesn't matter one way or the other and no corrupted Vietcong slave officials should take advantage over dirt poor Cambodian people from now on!
What do you mean,"it doesn't matter ...", 11:01? Of course it matter. Once we got our oil out of the ground, we only have to pay for the extraction fee, the transport fee, ..., and the refinery fee, and a little tax, and that should be less than 50 cent per litter. Thus, we will have the lover price in the region then.
Don't think small, my friend. We'll never get out of poverty that way.
To 11:56AM!
Hey fool! If Cambodia can't even compete in charging the same gas price as the Thaicong and the Vietcong and you can forget your fucken oil from the ground because it means only one thing and that is more corruptions are on the way and you can pray from now on that Cambodia can get out of poverty!
Beware of the black gold curse! The only way to get out of the curse is to have another civil war!
Well, nothing is 100% clean, but so long the gas price is decent, that is all that we care about, 12:20.
No country is 100% clean, and they are not collapsing from it either.
It seems that being dirt poor Cambodian people will have to pay more money for everything including gasoline! Shouldn't this be the incentive for poor Cambodian to be rich? But how can these dirt poor Cambodian people become rich when AH HUN SEN Vietcong slave committed all kinds of corruption to make Cambodian people poorer in the first place!
Nope the government is not corrupted, but being a poor country, it is not uncommon to have a few corrupted people inside government and outside. It isn't unbearable; otherwise, many people would have been dead already. What you heard is simply KKF propaganda to make the government look bad because we are close to Vietnam than we are closer to them.
To 4:23PM!
What! What are you trying to say?
It is the nature of all human wanting to live and to survive even if it means eating another human just to stay alive and the human will do it!
This is one thing about human instinct and that the human have the will to survive but even will power has its limitation too!
It is kind a sad to see all those homeless Cambodian people in Phnom Phen and against all odd and the dirt poor Cambodian people are fighting to survive every fucken day!
I don't give a fuck how close you are close to the Vietcong and if the opportunity come by and I wouldn't hesitate to put a gun to your head and blow your fucken brain out!
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