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Private sector representatives argued yesterday that Cambodia’s outdated taxation laws do not accurately reflect the Kingdom’s current business climate, urging the General Department of Taxation (GDT) to revise the legal framework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

  • 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