Logo of Phnom Penh Post newspaper Phnom Penh Post - Rice millers request exemption from VAT

Rice millers request exemption from VAT

Rice millers request exemption from VAT

As Cambodia continues to struggle with its cost competitiveness in the rice sector, rice millers and exporters met with the General Department of Taxation on Wednesday asking for an exemption from paying the 10 per cent value added tax (VAT), saying that it will help ease prices in the sector.

Kim Savuth, vice president of the Cambodia Rice Federation, said millers are having to pay higher taxes than neighbouring countries and not having to pay VAT will make them more competitive in at a time of heightened competition with regional integration looming at the end of the year.

“If we can get VAT exception, it would be good for rice miller to survive” he said, “We don’t want the rice miller to have to turn to corruption.”

Savuth said millers will dodge the tax if they are under pressure to continue paying VAT. He said Cambodia should follow Thailand’s example and apply the tax only to restaurants or companies that are processing the rice into other products.

Ngang Sophal, owner of Mom Sophal rice miller, said that paying VAT will increase his costs, making him less competitive than neighbouring countries. Sophal, who is currently registering to pay taxes, added that he was looking for more clarity on his future tax expenditures.

“I am concerned about how long I can survive in this business. I might sell my land instead of continuing,” he said.

The Tax Department could not be reached for comment.

Meanwhile, at a separate meeting on Wednesday, a Korean delegation met with the CRF and government officials to discuss investing in a grain port along the Mekong River to facilitate the transport of rice and agricultural products.

“It is not only a benefit for deducting the cost of rice delivery but also a benefit for other agricultural products and agriculture by products too,” said Moul Sarith, acting secretary-general of the Cambodia Rice Federation.

MOST VIEWED

  • Hungarian exposes 90 to Covid in Siem Reap

    The Ministry of Health has discovered 90 people who have been exposed directly or indirectly to a Hungarian man infected with Covid-19. They all are required to quarantine at home and the hospital. The ministry is searching for other affected people. Among the 90, one is the

  • PM warns of ‘new Cold War’

    Prime Minister Hun Sen said the possibility of a so-called new Cold War has become a significant concern and that all countries have to reject outright, any attempt to allow history to tragically repeat itself. He made the remarks in a speech during 75th Session

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • Cambodia, CRF win rice battle in EU Court

    The European General Court has rejected the European Commission’s (EC) request to reject a complaint submitted by Cambodia and the Cambodian Rice Federation (CRF) regarding the EU’s reintroduction of tariffs on Indica rice exports from Cambodia. A court order uploaded to the European