The Mirror, Vol. 14, No. 678
“Phnom Penh: A Civil society group for social accountability and transparency demanded the Anti-Corruption Unit to take action against a section of the tax collecting system for taking more money than what the invoices issued by the Ministry of Economy and Finance state.
“In the morning 16 August 2010, a civil society group for social accountability and transparency organized a press conference at the Baitong Restaurant in Phnom Penh about their fight against corruption in the form of excessive tax collection for vehicles.
“The president of the Independent Democratic Association of Non-Formal Economy, Mr. Von Pov, said during the conference that every year from July to October, a tax collection is implemented countrywide by tax officials of the Tax Department of the Ministry of Economy and Finance of the Kingdom of Cambodia. The collection is carried out in order to build up the national budget for the restoration and maintenance of public infrastructure, and all Cambodian citizens are obliged to pay tax on their vehicles, such as cars and motorbikes, though they suffer from the global economic crisis.
“Mr. Von Pov added regarding the tax collected by tax officials, that civil society groups for social accountability and transparency noticed that most citizens, who own vehicles, were forced by tax officials to pay an excess amount over that stated on the invoices issued by the Ministry of Economy and Finance. He added that at present, 1,391,565 cars and trucks, and 11,356,398 motorbikes [the number of motorbikes given is unrealistically high - that means that about 80% of all citizens, including babies and the whole rural population - own a registered motorcycle; we assume the number includes a mistype and may be 1,356,398 - Editor] have been registered and allowed to travel in Cambodia and they are required to pay tax. On average, if a vehicle is required to pay an additional amount of Riel 2,000 [approx. US$0.50] to tax officials, that means Cambodian citizens waste about US$1 million each year. This is corruption resulting from public officials using their positions as public officials to gain personal gain, so that corruption does not refer only to the stealing of money.
“Mr. Von Pov went on to say that to contribute to achieve the second stage of the Rectangular Strategy and to promote good governance, the Ministry of Economy and Finance, especially the Tax Department, must supervise tax officials so that they work following the official calculations for the collection of taxes. Also, the Tax Department must punish officials who commit offenses, or collect administrative fines from them, if they collect amounts beyond the tax invoices, and the Anti-Corruption Unit must take measures in such cases.
“A Coordinator of the East Asia and Pacific Social Accountability Network, Mr. San Chey, said that even though invoices are issued by the Tax Department, still excess tax collection happens, particularly in the Ponhea Leu district in Kandal and Prey Veng. He added, ‘We will submit reports within one week to the Tax Department to take action.’
“After there had been such criticism about excess tax collections by tax officials, the Tax Department released an announcement on 10 August 2010, where the third point reads, ‘Before paying tax, please read the tax tables posted publicly and pay accordingly the amount set in these tables. If tax officials demand more, please report their names and ID Card number to the Tax Department.’
“The head of the Anti-Corruption Unit, Mr. Om Yentieng, could not be reached for comments on Monday evening, but he used to say in a previous press conference that corruption relates not only to big money, but even 50 cents can also be considered as corruption.” Kampuchea Thmey, Vol.9, #2329, 17.8.2010
This article was first published by The Mirror, Vol. 14, No. 678 - Tuesday, 17.8.2010
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Norbert Klein is the Editor of The Mirror – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror
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