Keeping land tax-free: PM said
Monday, March 23, 2009 16:20Hun Sen, Cambodia’s Prime Minister and CPP deputy president, addressed his speech during the official opening of an irrigation system on Suturday in Pursat province by reiterating that the government vows not to take tax on farmers’ land and farmland in an effort to boost the agriculture sector.
The premier said that foreign government and non-governmental organizations called for the government to take tax on farmland since the 1990s. In response to the suggestion, he said that Cambodian farmers require not only tax-free land, but also irrigation systems and roads.
He also warned that land taxes could be implemented by other political parties, adding that other political parties promised to raid salaries by collecting land tax and other taxes.
Political parties and NGOs agreed with the government’s stance on small-scale farmers but taxing large land holdings. In addition, the opposition and NGOs have urged the government to issue legal land title to Cambodian citizens.
Son Chhay, SRP parliamentarian, said the government could earn about US$27 million per year if it charged $10 per hectare from the 2.7 million hectares that the government offered in concessions to wealthy foreign companies, reported the Phnom Penh Post.
He added that he is not aware of any country where people are allowed to own such large land holdings without paying tax. He said that the government should limit how many hectares of rice-farming land can be owned tax-free and increase taxes for land owners that have confiscated land and left it unplanted.
Business Tax Guru says:
November 23rd, 2009 at 10:49 am
I’ve been engaged in taxes for lengthier then I care to admit, both on the private side (all my working lifetime!!) and from a legal point of view since satisfying the bar and pursuing tax law. I’ve put up a lot of advice and corrected a lot of wrongs, and I must say that what you’ve posted makes perfect sense. Please persist in the good work – the more people know the better they’ll be equipped to cope with the tax man, and that’s what it’s all about.