Government Expects 14.5 Percent Rise in State Revenue
The government plans to raise $3.51 billion in state revenue in 2014 in order to finance a $3.4 billion draft budget, an increase of about 14.5 percent compared to the previous year, when the government raised $2.98 billion in revenue, according to a draft of the budget. The draft budget, which could be approved as early as Tuesday by the 68 CPP members of the National Assembly, represents a 13 percent year-on-year increase in spending. About $2 billion of state proceeds will come from taxes, with the most significant increase in revenue coming from property and income taxes. More modest rises are expected in taxes on petroleum, casinos and businesses. Some $350 million in revenue will come from official fees on forestry and fishery licenses, mining concessions and the lease or sale of state property. Cambodia will also take on $920 million in new debt to foreign governments next year in order to cover state spending, the same amount that it borrowed this year. The loans will come from China, Japan and South Korea, according to the draft budget. … The most significant increase in revenue will come from income tax, which is set to increase 15.9 percent to $81.62 million, and property tax, with a planned increase of 53 percent to $23 million. Taxes on petroleum are set to increase 7.9 percent to $15.17 million, while taxes on casinos will rise 8 percent to $2.24 million, according to the draft budget. … The opposition CNRP claims that the government is losing hundreds of millions of dollars in potential state revenue due to weak tax collection mechanisms that allow for widespread graft, particularly among customs officials. The opposition has also called for a major hike in the taxation of land and casino concessions to increase revenue. …
Hul Reaksmey
http://www.cambodiadaily.com/news/government-expects-14-5-percent-rise-in-state-revenue-46807/
