Customs’ taxing dilemma

Average Cambodians are to pay the price for stamping out corruption in the customs department.

Prices for basic goods, such as food and clothing, rose recently after the department was ordered last week to clean up its act and apply the official tax rate, importers told the Post yesterday.

A November 13 directive to the General Department of Customs and Excise of Cambodia was signed by its general director, Pen Simon. …

Previously, customs officers would often undercut the legal tax rate and pocket a portion for themselves. They are now enforcing the official rate, causing a hike in prices for consumers, according to importers who spoke to the Post yesterday. …

Traffic had banked up at the Vietnamese border, according to Hok Sovanna, general manager at food importer Mekong Food Group (Cambodia), as importers had to adapt to the new procedures. …

The balance between fighting corruption and controlling inflation is “very difficult” to manage, Cambodian Economic Association president Srey Chanty said.

Chanty said the government should decrease import taxes for items that lower-income people depend on, such as oil and sugar, and increase rates for products generally purchased by wealthier people, such as electronics. …The balance between fighting corruption and controlling inflation is “very difficult” to manage, Cambodian Economic Association president Srey Chanty said. …

Cambodia spent about $6.8 billion on imports over the first nine months of this year, an increase of 13 per cent from the $6 billion spent in the same period last year. …

At the Thai embassy’s Office of Commercial Affairs, business support specialist Surachet Maneepong said the official customs duties were now double that of the “traditional” non-official duties. …

Daniel de Carteret and Hor Kimsay
http://www.phnompenhpost.com/business/customs-taxing-dilemma