Logo of Phnom Penh Post newspaper Phnom Penh Post - Ministry explains tax hikes on heavy transportation vehicles




Ministry explains tax hikes on heavy transportation vehicles

A truck loaded with soil travels along a road in Phnom Penh's Chroy Changvar district in 2014.
A truck loaded with soil travels along a road in Phnom Penh's Chroy Changvar district in 2014. Eli Meixler

Ministry explains tax hikes on heavy transportation vehicles

The Ministry of Economy and Finance on Monday sought to explain a recent hefty increase in taxes imposed on heavy transportation vehicles, saying it was prompted by a need to support infrastructure maintenance expenditures and cover the elimination of taxes on vehicles smaller than 150cc.

The clarification from the General Department of Taxation came in the wake of the ministry’s June 16 announcement of the tax hikes – the first in 18 years, with some rates increasing as much as 166 per cent. The hikes had been met with displeasure in Kampong Thom, Kampong Cham, Tbong Khmum and Prey Veng provinces.

“This type of vehicle has a great impact on roads and the environment, and the government has to spend a huge amount of resources to build, repair and maintain [roads],” the notice reads, adding that the taxes are still low compared to those imposed on tourist vehicles.

Under the new scheme, 3-tonne vehicles will be taxed about $48.70, 3-tonne to 10-tonne vehicles will be taxed $121.74, 10-tonne to 20-tonne vehicles $243.48, and trucks over 20 tonnes will be taxed $486.96.

The announcement added that the elimination of taxes for motorbikes had cut expenses for millions of people nationwide.

However, the move was not welcomed by Meas Mach, owner of Unit Freight Service, who owns five trucks, each weighing less than 5 tonnes.

“It heavily impacts people like us . . . I believe many are affected since most possess vehicles lighter than 5 tonnes,” he said. “Vehicles lighter than 5 tonnes will not cause road damage – only if the vehicle is heavier, ranging from 30 to 40 tonnes.”

However, he added, “We’ll still pay the price stated by the state since it is our obligation.”

MOST VIEWED

  • 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,

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped

  • Kingdom, China rebut basis for US sanctions

    The Council for the Development of Cambodia, the Ministry of Foreign Affairs and International Cooperation, and Tianjin Union Investment Development Group Co Ltd (Tianjin) have responded to US sanctions on Union Development Group Co Ltd (UDG), a Chinese-owned company currently developing the sprawling $3.8 billion Dara

  • Influenza breaks out in eight provinces

    Nearly 600 people have been infected with influenza in eight provinces in the past month, Ministry of Health spokesperson Or Vandine said. The ministry is advising extreme caution. A report released by Vandine on Saturday said the Ministry of Health observed transmissions of influenza between August 15