Prime Minister Hun Sen appealed yesterday to private educational institutions operating in Cambodia to pay taxes on teacher salaries after reports that many such facilities have sought exemption status.
“[Tax] is an obligation, and it is not only in our country.
Many other countries have to pay higher tax on salary than us, and I think that many institutions of education have requested exemptions,” Hun Sen said during an address to graduating students at the Institute of National Education in Phnom Penh.
Cambodia’s Taxation Law implemented in 1994 stipulates that employees earning more than 500,001 riel (about US$125) or more per month must pay salary tax, said Cheam Yeap, senior lawmaker for the ruling Cambodian People’s Party.
Rong Chhun, president of the Cambodian Independent Teachers Association, said he was not opposed to the measure but said all forms of tax collection should be transparent.
Yim Sovann, a lawmaker for the opposition Sam Rainsy Party, said the government must also focus on other areas of tax collection, particularly from businesses.
“Imposing salary tax on workers averaging $125 per month is not appropriate in the current economic situation, when all kinds of goods are at higher prices, including gasoline,” he said.