Chun Sophal
The Phnom Penh Post
CAMBODIA’S tax on oil imports came under fire from opposition members as too high yesterday, but government officials maintain the duties are a necessary source of income for the national budget.
The Kingdom will have difficulty competing with its neighbours if it does not cancel or reduce rates on the oil import tax, said Sam Rainsy Party senator Yim Sovann.
High import taxes have caused oil prices to increase on domestic markets compared to countries like Thailand and Vietnam, which encourages illegal smuggling, he said.
“The cancellation of this import tax will result in a loss for the national budget,” he said. “But we will gain benefits for our economy and people because we can produce more finished products at low prices for exports to international markets.”
The government collects 1,200 riel (US$0.30) per litre of import oil, according to Yim Sovann. Higher oil prices increased the costs for Cambodia’s goods, making it challenging to compete with products from other countries.
“We cannot compete with products from other countries as long as we cannot reduce the difficulties stemming from [high] oil and electricity prices,” he said.
However, government officials said the revenue was crucial for the national budget.
Kong Vibol, secretary of state at the Ministry of Economy and Finance, told the National Assembly yesterday that oil import revenue increased to US$250 million this year, a 19 percent increase on 2009.
“We will lose about $250 million if we cancel the full oil import tax as requested by Senators from the opposition party,” he said.
3 comments:
The people of Cambodia are rich. It will be more better if the government increase import tax to more than 0.30 cent to support national budget. The economies will be more growth if the gas cost at $2-3/l, then the government will have more money for its work..........
Prime minister Hun Sen! your lost your land and sea again, next time Cambodian border next to your home, Heng Somrin he lost his entire home village to Viet already but dare to say nothing, Chea Sim is too weak to say anything except prepare himself for judgement day, where is our belove king please get out from closet and give a big slap on Hun Sen face and say louder "why you gave my land and sea to Viet and punish my people hasss!"?, His majesty the king you can not stay in closet for too long, Cambodian are waiting for you to do something, you have no wife no kid must not afraid to die, you will be our hero king forever.
What happend to our oil discovered in the Gulf of Cambodia(Not Gulf of Siam)? when are we start drilling and reap the benefits for our people?
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