Wednesday, 28 May 2008
Chun Sophal
The Mekong Times
With discontent growing over rampant inflation, the Cambodian government yesterday claimed it will spend US$300 million on fuel subsidies in 2008.
“We are trying to control inflation which is a phenomenon that influences [Cambodia] from outside by … subsidizing gasoline,” said Economy and Finance Minister Keat Chhon yesterday. He predicted the subsidies would cost the state US$300 million by year’s end.
The government claimed last month it had spent US$29 million on gasoline subsidies so far this year.
Keat Chhon said yesterday the government still imposes the same tax on oil – US$309 per ton for gasoline and US$267 for diesel – despite the fact that imported oil has recently increased price to over US$1,000 per ton. “Currently, we do not take [tax] freight and insurance even though the oil price is rising,” he added.
Son Chhay, a Sam Rainsy Party parliamentarian, was unconvinced. He said the government’s claims were contrary to fact, noting that the government had previously taxed fuel at 100 percent, only lowering the price when international prices soared.
“I think that if the government taxed [fuel] at the same level as in 1999, gasoline would increase to US$2.50 per liter,” he claimed. “I think that the minister [Keat Chhon]’s speech was an empty claim that projects a technical image but falsely leads public opinion [astray] because the government has allocated no budget to subsidize [fuel] inflation.”
Chan Sophal, president of the Cambodian Economic Association, was also left cold by Keat Chhon’s claims. “We do not see the government subsidizing oil,” he said. “Now, Cambodia has imposed the highest tax on fuel [in the region], three times higher than neighboring countries.”
In any case, Chan Sophal said fuel subsidies “look good on paper”, but are “ineffective in curbing inflation.”
Opposition leader Sam Rainsy has frequently promised to lower fuel prices by cutting fuel taxes and regulating the sale of fuel.
Son Chhay yesterday jumped on the bandwagon. “[I]f the government intends to reduce inflation and boost local production, the government should cancel tax on gasoline completely,” he said.
“We are trying to control inflation which is a phenomenon that influences [Cambodia] from outside by … subsidizing gasoline,” said Economy and Finance Minister Keat Chhon yesterday. He predicted the subsidies would cost the state US$300 million by year’s end.
The government claimed last month it had spent US$29 million on gasoline subsidies so far this year.
Keat Chhon said yesterday the government still imposes the same tax on oil – US$309 per ton for gasoline and US$267 for diesel – despite the fact that imported oil has recently increased price to over US$1,000 per ton. “Currently, we do not take [tax] freight and insurance even though the oil price is rising,” he added.
Son Chhay, a Sam Rainsy Party parliamentarian, was unconvinced. He said the government’s claims were contrary to fact, noting that the government had previously taxed fuel at 100 percent, only lowering the price when international prices soared.
“I think that if the government taxed [fuel] at the same level as in 1999, gasoline would increase to US$2.50 per liter,” he claimed. “I think that the minister [Keat Chhon]’s speech was an empty claim that projects a technical image but falsely leads public opinion [astray] because the government has allocated no budget to subsidize [fuel] inflation.”
Chan Sophal, president of the Cambodian Economic Association, was also left cold by Keat Chhon’s claims. “We do not see the government subsidizing oil,” he said. “Now, Cambodia has imposed the highest tax on fuel [in the region], three times higher than neighboring countries.”
In any case, Chan Sophal said fuel subsidies “look good on paper”, but are “ineffective in curbing inflation.”
Opposition leader Sam Rainsy has frequently promised to lower fuel prices by cutting fuel taxes and regulating the sale of fuel.
Son Chhay yesterday jumped on the bandwagon. “[I]f the government intends to reduce inflation and boost local production, the government should cancel tax on gasoline completely,” he said.
[I]f the government intends to reduce inflation and boost local production, the government should cancel tax on gasoline completely,” he said.
ReplyDeleteConsumer will be very pleased if the tax is abolished completely, but any where in the world no government would want to do that.
True, especially when Cambodia tax is at rock bottom already. Ah Khmer-Yuon (Son Chhay) is retarded among other cyclo drivers with fake westerner degree in the SRP.
ReplyDeleteAND FAKE WESTERN DEGREE BUT HUN SEN AFTER ACCUSED HIM OF THIS AND THAT WOULD VERY MUCH TO HAVE HIM SWIFT SIDE CPP. PROMISE HIM WITH DEPUTY PRIME MIMISTER JOB FOR GOVERNEMENT DOMESTIC AFFAIRS.
ReplyDeleteSon Chhay... well maybe He's already with CPP. No tax.. How can government make money to build infrastructures...
ReplyDeletetoc toc toc son chhay
How can government pay his salaries.. for just bla bla ???
what? talk about differing political platform! gov't have to earn money somehow; gasoline is one of them. reform, please. not enough. parliament have to reach consensus, anyway; it's not just one individual's view, must be agree upon by the majority of legislature, however, is good to have view, even bad ones. debate is a good idea. every individual has to explain why they say something so everyone can see their view or intention behind their idea.
ReplyDelete