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Phnom Penh's skyline. Cambodia's new property tax will start being collected from January next year, say government officials. (Photo by: Sovan Philong) |
Soeun Say
The Phnom Penh Post
Cambodia's new national property tax would be implemented from January next year, boosting the federal coffers up to an estimated US$4 million, officials said yesterday.
The real estate division at the Ministry of Economy and Finance was granted approval on Friday to establish a committee for property evaluation, Norng Piseth, the Real Estate Division chief, told The Post.
“We have prepared the prakas to establish a committee for property evaluation and we will start implementing tax collection on property from early 2011 next year, as the National Assembly requires,” he said.
The National Assembly passed the law for a tax on all real estate, including land, houses, apartments, and other infrastructure constructed on that land, in November 2009.
According to the Prakas – or edict Number 493 – the property tax will be an annual payment calculated as 0.1 percent of the value of the property as estimated by the evaluation committee, based on market prices. Only those properties worth 100 million riel ($25, 000) or more will be taxed.
Norng Piseth said the tax would bring more income for the government to further development.
“This tax is very important in order to increase the national income to develop the country,” he said.
The new levy is expected to raise between $3 million to $4 million in additional revenue, according to the Ministry of Economy and Finance estimates.
Touch Samnang, project manager and architecture of the Diamond Island development project behind developer Overseas Cambodia Investment Corp, said yesterday that he supported the tax on property but also called for fairness.
“I think that we should have this tax in order to increase the economic growth in Cambodia. So, it is not a problem for us. We’re really [in] support [of] and follow what the government requires,” he said, adding that the government should ensure transparency, including that all eligible property owners and housing developers did pay up.
Cheap Sareth, a land owner in Dangkor district, Phnom Penh, said yesterday he felt that it was too early for the government to begin collect property taxes.
“In my point of view, I think the government is moving too early to collect tax on property while the country is still recovering from the global economic crisis,” he said.
The International Monetary Fund said in its yearly assessment on Cambodia for 2010 said that long-term fiscal stability for the Kingdom required further improving revenue administration.
“Gains in tax collection offer the best hope for Cambodia to meet the dual objective of securing fiscal sustainability and mobilizing resources for its development needs,” the fund said in a release on its findings.
Keat Chhon, MEF deputy prime minister said during National Assembly discussions on the property tax last year that the new tax was not only contributing to the national budget but was helping establish a “tax culture”.
“We do not expect much income from this new law, but we are making this law as we also want to establish a tax culture which will facilitate us to collect tax directly in the future,” he said.
At the time, he said about 180,000 households would fall under the requirements to pay the new tax.
MEF deputy prime minister could not be contacted for comment yesterday.
9 comments:
Keep saying we keep building more departments and houses for our up coming vietnamese. We will reach 10 millions at 2015. Stupid or not stupid what occuring at Cambodia is fact.
Plus China won't help you anymore stop dreaming. You are wasting your time, talking like that only a loser like you khmer do.
Talking about prostitutes, cambodian girls and boys are even sex slave!
^^12:03 SURE we will take 10 million Light skin Youns girls to come in Cambodia but we will not take Youn guys ok! Only Youn girls only! I don't mind interbreeding with them Youn girls!
ah chhkae chhkuot kit tae pi rok mothyo bay kieb sang kot leu reas tam kal lbech. min ban chuoy ey dol reas te, mean tae chro bach ko reas yok luy dak thonea kea, ah chhkae muoy pouch.
Please increase tax rate more higher and that money use to build countryside.
Tax Khmer 0.001% and tax Viet 200000%
12:03PM, come to Cambodia and see what the majority of the prostitutes are. Mainly your kind.
dam taxes will go to government official...or be cheated..10 will only show 2.
collecting property taxes in one way to contribute financially to the society and public services in cambodia. make sure the law is strict so certain individual(s) can't easily abuse the system. in other words, make is transparent, accountable with strict regulation, law, etc... no room for mistake or lax there, really! god bless cambodia.
the question should be how to trust or have confidence in people doing their job well. remember the wise phrase: "watch what people are cyncial about, and one can often discover what they lack"? this is a good example of having confidence and building trust in others for the one that complained or whined the most are the one that lacks. so true; it's called hypocrites, you know! think about it, ok!
good point, going back to corruption thing, there ought to be a law or regulation that discoruages or penalizes people for stealing from the people of cambodia, really! and make it real strict and relentless and their life will be miserable, etc... hey, if that the way they chose to learn, more power to the law and regulation, you know! how else can we teach and educate people if they failed learn from it? any better idea?
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