Criticisms over beer smuggling report

Thursday, May 31, 2007
Everyday.com.kh
Translated from Khmer by Socheata

Prime Minister Hun Sen criticized a report indicating that Cambodia lost about $20 million in revenue from imported beer. During a ceremony for the distribution of student diploma on Wednesday, Hun Sen called this report an exaggeration of the truth. Hun Sen said: “so each of the 14 million people must drink 12 liters (of beer) from young children, women, monks, if we count all 14 million people, each one must drink 12 liters. We recognize that beer is smuggled in, but it is limited, this limit (as reported) is way overrated. This type of study is a money-wasted study, and it cannot correct the activities of the Custom Department, nor can it correct any measures.” Hun Sen’s criticism does not seem to point to any organization in particular, however, the Economic Institute of Cambodia (EIC) recently reported that Cambodia lost about $22 million last year because of beer smuggling from abroad without paying tax, beer is mainly smuggled in from Singapore and Thailand.

Hun Sen on report of revenue loss over beer smuggling: Deny! Deny! Deny!

May 30, 2007
Cambodian PM refuses report of revenue loss over beer smuggling

The government can't accept a recent report saying it lost over 20 million U.S. dollars annually for tax revenues over beer smuggling from Thailand and Singapore, said Prime Minister Hun Sen on Wednesday.

"The study is a waste of money. It is an unacceptable report," said Hun Sen, while referring to the Economic Institute of Cambodia (EIC), an independent economic think tank, who said that Cambodia lost 22 million U.S. dollars for tax revenues over beer smuggling last year.

"Their report aims at blaming the government," he said.

With the lost money, Cambodia can buy enough beer for its people to drink and even have shower with it, he quipped.

The report has been widely published on local media, saying that the smuggled brew accounted for 29 percent of the country's total beer market, far outstripping the legal imports at six percent.

It blamed the boom of contraband beer on weak government and law enforcement.

Source: Xinhua

Cambodia loses $22 million to beer smuggling in 2006

Friday, May 11, 2007
AFP

Beer smuggling cost Cambodia's Government $US22 million in lost tax revenue last year, according to an economic think tank, which warns that contraband alcohol was on the increase.

Millions of bottles and cans of beer imported from Singapore and Thailand simply disappeared at the Cambodian border before being taxed, the Economic Institute of Cambodia (EIC) said in a report commissioned by two local breweries, Cambrew and Cambodia Brewery Limited.

"With weak governance and law enforcement, 'contraband' beer has ... been booming," the EIC said, adding that the smuggled brew accounted for 29 per cent of the country's total beer market, far outstripping legal imports at 6 per cent.

The EIC says the Japanese beer Asahi, the cheapest foreign brand on the market, made-up the largest percentage of imported beer.

"It is crucial the government take energetic measures to combat 'contraband' beer, especially along the Thai border," it added.

Business experts say the losses represent about 3 per cent of Cambodia's total budget revenue, and have wider implications for anyone trying to produce locally.

According to Bretton Sciaroni, who co-chairs a monthly working group on law, taxation and good governance for the private sector, says the Swiss foods giant Nestle closed its factory in Cambodia several years ago because its locally produced products could not compete with smuggled goods.

Cambodia's Parliament has yet to pass anti-corruption legislation that has been demanded by the country's donors.