Logo of Phnom Penh Post newspaper Phnom Penh Post - High rubber prices salve tax headache

High rubber prices salve tax headache

High rubber prices salve tax headache

HIGH international rubber prices are making a recent tax rise on exports more palatable, according to some of the Kingdom’s leading figures in rubber production.

Increasing rubber prices are generating high profits for the industry, with quality exports fetching near US$5,000 per tonne on international markets, according to Mong Reththy, who is a prominent businessman and co-president of the government-private sector working group on agriculture.

Last month, Prime Minister Hun Sen signed into law an increased tax on rubber.

If the product is worth below $2,000 a tonne, a tax of $50 per tonne will be charged.

While if the product is worth above $4,000, the tax will be $300 per tonne, according to article three of a subdecree which went into effect on January 1.

For exports worth between $2,000 and $4,000 a tonnes, the tax ranges from $50 to $200.

The tax had previously sat at $50 per tonne, regardless as to the value of rubber.

“I think rubber exporters will have no objection to paying taxes in line with special taxes imposed by the government,” said Mong Reththy yesterday

Rubber producers interviews by The Post raised few concerns about the increase in levies.

Men Sopheak, deputy director of Sopheak Nika Investment, said the government’s decision to raise the tax was acceptable, given the commodity’s rise in value on international markets in recent months.
Sopheak Nika exports some 10,000 tonnes of rubber each year.

While Leng Rithy, president of the Vietnam Rubber Enterprise Federation, said the company – which has been granted land concessions totaling 100,000 hectares – was still studying Cambodia’s decision to increase the export duties.

“The company hasn’t yet produced rubber for export, so we need time to study the decision in advance,” he stated.

Cambodia exported some 35,000 tones to 40,000 tonnes of rubber per year over the last five years, according to data obtained from the Cambodian Ministry of Agriculture, Forestry, and Fisheries.

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with

  • Capital set to beef up security

    Phnom Penh municipal governor Khuong Sreng held the first meeting of the year with heads of armed forces in the capital to review and repair the deficiencies related to gun control, drug crimes, social order disruptions due to alcohol consumption and traffic law enforcement. Municipal