Logo of Phnom Penh Post newspaper Phnom Penh Post - Property tax target set for the capital

Property tax target set for the capital

Property tax target set for the capital

THE Municipality of Phnom Penh aims to collect US$12 million in property taxes in the first year, with the funds earmarked for city improvements, Governor Kep Chuktema said.

“Our city is more developed, but it is not enough. We need a larger budget to develop a lot of projects in the city, to compete with other cities in Asia,” said Kep Chuktema on Wednesday.

“If we do not try to collect more profit, we will face a large problem,” he said.

Announced in 2009, the 0.1 percent annual tax applies to real estate with a valuation of more than 100 million riel (US$24,510), with a few exemptions. Properties are expected to be registered by September, with 2012 as the first full year of property tax collection, he said.

Developers said they supported collecting property taxes, but called for transparency on how the funds were collected and spent.

Khneg Ser, assistant to the management team of the proposed $2 billion Camko City satellite project, said it was in line with practices in most countries.

“I think we should implement this tax, as [the funds will] contribute to increased economic growth in Cambodia,” he said. “We support it, and will follow as the government requires.”

He added the government should ensure that all eligible property owners and housing developers pay the applicable taxes.

However, some voiced opposition to the state-ordered property taxes, saying it would hit a property sector still in recovery.

Dangkor district land owner Cheap Sareth said he felt it was too early for the government to begin collecting property taxes.

“The government is moving too early to collect tax on property while the country is still recovering from the global economic crisis,” he said.

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Nearly 2,000 detained for Phnom Penh curfew breach

    Nearly 2,000 people were detained in the capital for violating the curfew imposed by the government and Phnom Penh Municipal Administration. Municipal police spokesman San Sokseyha told The Post on May 16 that people were detained in two phases. In phase one, the government locked down Phnom

  • Jab drive announced for two more Phnom Penh districts

    The Phnom Penh Municipal Administration on May 15 announced a first-dose novel-coronavirus vaccination campaign for Boeung Keng Kang and Sen Sok districts from May 18-31, and a follow-up second-shot drive from June 1-15. Twenty vaccination sites have been set up in a combined 13 communes across both