Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Oil import tax under fire from opposition

Oil import tax under fire from opposition

Oil import tax under fire from opposition

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.


  • Professor beaten by mob in Phnom Penh after alleged hit-and-run

    Updated with new information: 6:44am, Tuesday March 13 2018 A university professor accused of a hit-and-run has been transported to Vietnam with serious head injuries after he was brutally beaten by a mob in Phnom Penh late Sunday afternoon. A video of the attack shows a group

  • American ‘fugitive’ arrested in Cambodia outside of US Embassy

    An American citizen was arrested on request by the US Embassy in Phnom Penh on Tuesday, according to Cambodian police. Major General Uk Hei Sela, chief of investigations at the Department of Immigration, identified the man as American Jan Sterling Hagen, and said he was

  • One Australian, one Cambodian killed in explosion at military base

    Updated: 5:20pm, Friday 16 March 2018 An Australian tourist and a Cambodian soldier were killed in an explosion on Thursday afternoon at an army base in Cambodia’s Kampong Speu province. The Australian, whom the government initially identified as a technical demining expert in his 40s, and

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of