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the Ministry of Economy and Finance to re-examine the duties on property transfers, saying the current fee system is outdated as it is three years old.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

  • 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,

  • 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