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Vehicle tax revenue increases

Vehicle tax revenue increases


A 2012 tax stamp displayed on the front of a motorbike in Phnom Penh yesterday. Photograph: Pha Lina/Phnom Penh Post

The Kingdom’s revenue from taxes collected on vehicles rose 36 per cent year-on-year in 2012, officials said yesterday.

Taxes collected on vehicles, of all makes and models, account for approximately 10 per cent of the total tax revenue of the state and totalled more than US$25 million for 2012.

Officials said increasing public awareness of the importance of paying taxes was the main engine for this growth.

Sim Eang, royal delegate in charge of the General Department of Taxation, said during the press conference at a signing ceremony with Acleda Bank Plc in Phnom Penh yesterday that the awareness and willingness of people to pay their taxes has resulted in revenue from vehicle tax stamps increasing significantly this year.

The department has been trying to promote information about the taxes to the public in order to build awareness as well as to improve the tax payment procedure by making it even simpler, he said. “We have noticed that tax payers now understand more about their duty to pay tax.”

Critics have laid claims of corruption against the department. However, Kong Vibol, secretary of state for the Ministry of Economy and Finance, said that the memorandum of understanding between the department and Acleda to make the bank a partner in collecting taxes was a step forward to complete transparency.

“Although we only have this agreement with the bank for the payment of taxes on vehicles, it is a very significant improvement in accountability and transparency for the department, which it is normally criticized for. We will consider having other taxes collected by the bank if it will help to increase tax revenue further.”

To contact the reporter on this story: May Kunmakara at [email protected]


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