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Property-related tax revenues rocket

Property-related tax revenues rocket

Government tax revenue from transferring, leasing and selling property increased 60 percent in 2010 over the previous year, according to figures from the Ministry of Land Management, Urban Planning, and Construction.

An increase in activity in the property sector had generated growing revenues, Ministry spokeswoman Nun Pheany claimed yesterday.

“We hope tax revenue will gradually increase in 2011 due to people’s confidence in today’s economic stability, which will allow them to expand their property businesses such as transferring, leasing, and selling property,” she said.

The figures show that US$19.51 million, or 78 billion riel, was collected in 2010, an increase on $12.16 million in 2009.

Sung Bonna, president of the National Valuers Association of Cambodia, said he agreed with the ministry that property transactions were on the upswing.

Further agricultural development would likely create more activity in the property sector through increased buying and selling in 2011, he said.

“We are seeing growth in property business actively starting from January, and this is a positive sign indicating that our property business is recovering,” said Sung Bonna.

Many claim the Cambodian property sector has been slow to recover from the global financial crisis.

Cheng Keng, director of Phnom Penh-based property company CPL, said lingering declines in values of property offered opportunities for Cambodians to purchase and lease property – as prices had hit bottom.

“Now is a good time for Cambodian people to invest in the property business,” he said, adding this may increase property prices.

Property prices have not returned to pre-crisis levels, according to the National Valuers Association.

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