Logo of Phnom Penh Post newspaper Phnom Penh Post - Royal Group head Kith Meng urges tax rate revision

Royal Group head Kith Meng urges tax rate revision

Cambodian Chamber of Commerce president Kith Meng (right) and Kong Vibol, director-general at the tax department, chair a meeting in Phnom Penh yesterday.
Cambodian Chamber of Commerce president Kith Meng (right) and Kong Vibol, director-general at the tax department, chair a meeting in Phnom Penh yesterday. Heng Chivoan

Royal Group head Kith Meng urges tax rate revision

Private sector representatives argued yesterday that Cambodia’s outdated taxation laws do not accurately reflect the Kingdom’s current business climate, urging the General Department of Taxation (GDT) to revise the legal framework to promote private sector growth.

Speaking at a meeting held between the tax department and the Cambodian Chamber of Commerce (CCC), Kith Meng, president of the organisation and the head of Royal Group, said that a tax revision was needed to boost business activity, strengthen competitiveness, develop transportation and clear up the import and export paperwork process.

“I think the tax rate we are using now was made for a time long ago and there has never been any adjustment since,” he said. “We should know how to make the tax rate [in Cambodia] parallel to neighbouring countries.”

Although he did not provide specific examples as to how the taxation system should be revised, he said that with ASEAN competition, the Kingdom’s laws should reflect regional changes.

Kong Vibol, director of GDT, agreed that taxation law, which was originally created in 1993 and revised partially in 2003, was due for an overhaul despite the many reforms that have been implemented.

“We have drafted the amendment of law on taxation, which is now 90 per cent complete,” he said. “The group who works on taxation law amendment works every day so that we can send it to the government for further amendment by the end of June.”

The GDT began a concerted reform agenda in 2013 that included online tax registration and payments, and strengthening collection transparency.

State coffers grew to $1.3 billion last year with a 2016 collection target of $1.5 billion. From the beginning of January to the end of April, the GDT had already collected a total of $638 million, a 21 per cent increase compared to the same time last year.

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the