Prime Minister Hun Manet addresses 20,000 factory workers on October 3 in Phnom Penh’s Meanchey district. SHS
Prime Minister Hun Manet has reaffirmed that the new government has neither created any new categories of tax nor increased any existing ones, while also noting that some taxes have been suspended.
He issued the clarification in response to concerns expressed by some members of the public surrounding the introduction of a Capital Gains Tax, which is widely expected to take effect in 2024, though Manet confirmed recently that no final decision has been reached.
Speaking to garment workers in Phnom Penh’s Meanchey district on October 3, Manet said recent confusion regarding taxes, some of which had been implemented since the 1980s, was unfounded.
“Let me stress that no new taxes have been created. Secondly, there has not been any increase in the existing tax rates. We are not choking people as some critics have claimed,” he added.
He also reiterated his predecessor’s pledge that the government led by the Cambodian People’s Party (CPP) would absolutely not apply taxes to rice fields belong to subsistent farmers. Materials used in the agriculture sector – and agricultural products – are also exempt.
“We will not take tax on any real estate which costs under $25,000 either. If you buy house for less than this price, you are not required to pay tax. And stamp duty [registration tax] does not apply to property under $70,000,” he said.
“In addition, registration taxes for a one-time property transfer from parents to children, grandparents to grandchildren or husband to wife, will also be free of charge. This is our commitment,” he added.
He also noted that the government will still not require road tax payments for motorbikes and tuk tuks. This policy began in 2011, and will continue into the future.
“We haven’t created any new types of tax, and we are committed to continuing these kinds of tax exemptions,” he said.
People selling goods on a small scale, such as household items in the markets, are also exempt from paying taxes.
“Some people have claimed that since I took office, fees have been charged even for selling things from a basket in the market. We have not done this. Authorities at all levels must investigate these allegations,” he said.
Manet said more measures will be revealed during his meeting with representatives of the private sector in November.
