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Tax authority sets window for road tax compliance

Vehicles travel along National Road 1 on the outskirts of Phnom Penh last year.
Vehicles travel along National Road 1 on the outskirts of Phnom Penh last year. Pha Lina

Tax authority sets window for road tax compliance

The General Department of Taxation (GDT) announced yesterday that the government will collect annual road tax payments from July 1 until November 30.

Road tax will be imposed on all vehicles except for motorbikes, ambulances, military vehicles, police cars, agricultural vehicles, embassy cars and vehicles used by international organisations. The tax is calculated by engine size, year of production and car value.

As an attempt to combat corruption and ensure transparency, GDT has allowed taxpayers to pay their due taxes at Acleda Bank and Canadia Bank since 2013. Fines will apply to those who have not paid by January 1.

San Chey, executive director of the Affiliated Network for Social Accountability Cambodia, argued that while bank-facilitated payments may ensure transparency, the tax payment process is still too complicated for many citizens to complete.

“GDT needs to find easier ways for taxpayers to pay and encourage them to pay tax happily,” he said. “It also needs to work closer with the Ministry of Public Works and Transport in updating vehicle numbers.”

According to Chey, approximately 50,000 taxable vehicles did not pay road tax last year.

Data from the Ministry of Public Works and Transport show the number of registered vehicles grew by 14 per cent last year, with more than 3.2 million vehicles now registered, of which 2.7 million are motorbikes.

GDT director Kong Vibol could not be reached for comment yesterday.

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