Exchange rate set for property taxes

Exchange rate set for property taxes

THE Minister of Economy and Fin-ance has fixed the exchange rate for payment of property tax this year at 4000 riel to the dollar, according to a prakas obtained yesterday.

“We have issued this prakas to co-ordinate and make it easier for the Cambodian people to pay property tax,” ministry Secretary of State Ngy Tayi said.

Yesterday, one dollar traded for 4088 riel in Phnom Penh. 

The property tax will be levied at 0.1 per cent of a property’s value, provided the property is worth more than 100 million riel, or US$25,000. 

Ngy Tayi said this year’s property-tax collection eff-orts, the Kingdom’s first, would assist with establishing a culture of tax collect-ion in Cambodia.

“It is our duty to pay the tax,” he said. 

“If we have less, we pay less than if we have much. 

“We want to establish a property tax culture and morality, allowing us to collect tax directly in the future.”

Ngi Tayi played down concerns that the property tax revenues could be misappropriated.

“We will be transparent for the Cambodian people. 

“We will use the national income generated from the property tax to develop the villages, communes and districts,” he said.

National  Valuers’ Association of Cambodia president Sung Bonna said the move to use the riel in collecting taxes would reinforce its use in Cambodia, similar to the decision to require Cambodia Securities Exchange listings in riel.

“I think the purpose of the government is to reinforce the local currency,” he said.

Cambodia Property Limited managing director Cheng Kheng said he hoped revenue generated from the property tax would allow infrastructure such as roads, bridges, schools and hospitals to be built.

Neighbouring countries were collecting property taxes, and the time had come for Cambodia, he said.

“I think that it’s time to begin collecting property tax,  but we want the government to be transparent.”

The collection of Cambodia’s property tax will begin in the capital’s eight districts and 26 other cities next month.

MOST VIEWED

  • Thousands attend CNRP-organised pro-democracy vigil in South Korea

    Thousands of supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) on Saturday gathered in the South Korean city of Gwangju to hold a candlelight demonstration calling for the “liberation” of democracy in Cambodia. Yim Sinorn, a CNRP member in South Korea, said on

  • Cambodia-Thailand rail reconnected after 45 years

    A railway reconnecting Cambodia and Thailand was officially inaugurated on Monday following a 45-year hiatus, with the two kingdoms’ prime ministers in attendance at the ceremony. On the occasion, Cambodian Prime Minister Hun Sen and Thai Prime Minister Prayut Chan-o-cha travelled together from Thailand’s

  • US Embassy: Chinese trade does not help like the West’s

    The US Embassy in Phnom Penh on Friday said relations between China and Cambodia did not create jobs or help industry when compared to the trade between the Kingdom and the US. “About 87 per cent of trade [with China] are Chinese imports, which do not

  • Vietnamese land-grabbers held

    Following a provincial court order, Ratanakkiri Military Police on April 16 arrested 12 Vietnamese nationals accused of crossing the border into Cambodia and illegally clearing forest land. The accused are now being detained at Phnom Svay prison in the province. Ratanakkiri military police commander Thav Yen told