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

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there