Logo of Phnom Penh Post newspaper Phnom Penh Post - Hun Sen calls on officials to update property tax scheme

Hun Sen calls on officials to update property tax scheme

Content image - Phnom Penh Post
Green and blue mesh cover buildings under construction in Phnom Penh. Heng Chivoan

Hun Sen calls on officials to update property tax scheme

Caretaker Prime Minister Hun Sen on Wednesday called on officials from the Ministry of Economy and Finance to re-examine the duties on property transfers, saying the current fee system is outdated as it is three years old.

Speaking before more than 15,000 workers in the capital’s Sen Sok district, Hun Sen claimed that political stability and economic growth have resulted in an increase in the price of land.

He said since land prices were now higher, taxes should be higher for buying property as well.

“The ministry is taking stamp duty fees as a tax on land prices, which were set three to four years ago,” he said, adding that the property market had changed drastically in the meantime.

$200 up to $1,000

He said a plot of land that had been $200 per square metre back then was now worth as much as $1,000 per square metre.'

General Department of Taxation (GDT) director-general Kong Vibol did not answer phone calls made on Wednesday.

According to the GDT’s website, the stamp duty fee is set at four per cent for transfers of property or transfers of unoccupied land titles without any construction under the form of sales, exchanges, receipt of donations, and company shares.

Khmer Foundation Appraisals president and CEO Noun Rithy welcomed Hun Sen’s call, saying that the ministry should revise the fee structure to follow current property prices.

“It’s good that the pricing of stamp duties should be revised because what is being used every day does not match current market values,” he said.

According to Rithy, fees are determined by zone via ministry officials. “Updating the price will help the state to gain higher revenue for national development,” he said.

In the first seven months of this year, the GDT collected tax revenues of more than $1.3 billion – up 15.2 per cent compared to the same period last year.

A Ministry of Land Management report said that last year they took in around $78 million from stamp duty fees.

MOST VIEWED

  • Over $3M in traffic fines collected in two months

    Traffic police officers collected over $3 million in fines throughout the Kingdom during the past two months when officers strictly enforced the law in accordance with a May sub-decree, officials said. As incentives, law enforcement officers received between 200,000 and two million riel ($50 to $500) each. The figures

  • Accused not treated equally, says CCHR

    The Cambodia Centre for Human Rights (CCHR) has urged the Court of Appeal to do more to ensure that an accused’s right to a fair trial is fully respected. In a bulletin released on Monday, the CCHR said it had monitored 273 cases at the

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is