Logo of Phnom Penh Post newspaper Phnom Penh Post - Ministry to lose $60M a year in revenue

Ministry to lose $60M a year in revenue

Content image - Phnom Penh Post
Niv Mengheng rice shop near Phnom Penh Railway Station. Hong Menea

Ministry to lose $60M a year in revenue

The Ministry of Commerce will lose $60 million in revenue annually after the government eliminated export procedures in a campaign to boost competitiveness, a senior official at the ministry has said.

Speaking at a press conference on Friday regarding the EU’s decision to impose safeguard measures on Cambodian rice, the ministry’s secretary of state Sok Sopheak said a series of government decisions to eliminate export procedures would help lower costs for businesses and rice exporters.

Sopheak said the November 2017 decision to eliminate export management fees from last year resulted in an annual revenue loss of $20 million.

He said last month’s decision not to require exporters to apply for a certificate of origin (CO) would yield in a $10 million revenue loss while the most recent decision to relieve Camcontrol from its inspection duties at border checkpoints will cause a further $30 million loss.

“[The revenue lost] from the reformation will help all types of businesses to conduct commerce as well as help the Cambodian rice industry,” he said.

Though the EU recently decided to impose customs tariffs for Cambodian rice exports, Sopheak said the government will lower operating costs to offset the burden incurred by the tariffs.

“[Very soon,] the Cambodian government may release a new sub-decree and some ministries will release some Prakas that are currently in preparation [to help the sector].”

The resulting losses would be equal to 73 per cent of the ministry’s revenue last year which saw it collect $82 million from public services.

Ministry report

The ministry’s 2018 report said Camcontrol generated $28.75 million from petroleum services and quality inspection of goods while revenue collection from public services amounted to $52.78 million.

The Cambodian rice sector lost its duty-free export status with the EU last Friday after the European bloc decided to impose tariffs on rice from Cambodia and Myanmar, allegedly to curb a surge in imports.

The sector will be forced to pay about $53 million in the first year based on the amount the Kingdom exported to the EU last year.

Exporters and economists have said the actual impact of rice tariffs to the EU market needs a trial period to assess consumer reaction. However, the solution to overcoming the EU’s decision is to lower operating costs to strengthen competitiveness, they said.

MOST VIEWED

  • Chinese ‘prank’ threat video is no joke for Cambodia

    ‘Preah Sihanouk province, in the next three years, whether safe or chaotic, will be under my control,” declared a Chinese man in a white T-shirt, as another 19 men stood behind him shirtless, in a video that went viral on social media last month. After the

  • Woman detained for murder of hairdresser over unpaid $1K debt

    A woman has been held in connection with the murder of a 40-year-old widow. The victim’s daughter claims the motive was the suspect’s unpaid four million riel ($1,000) debt to her mother. The 17-year-old girl, Pich Sievmey, said her mother, Koem Yaneang, a hairdresser

  • ABA reports $71.8M net profit

    ABA Bank, a member of the National Bank of Canada group, recorded a net profit of $71.8 million last year, up 55 per cent from $46.2 million in 2017, its annual report released on Monday stated. A rise in the bank’s loan portfolio and the expansion of stated

  • Cambodia, Singapore to ‘move on’ from Lee remarks storm

    Cambodia, Singapore and Vietnam have agreed to move on from the controversy caused by remarks from Singapore’s Prime Minister Lee Hsien Loong and follow the path of cooperation, dialogue and friendship. The foreign ministers of the three countries had separate telephone conversations on Friday