Cambodia gov’t cuts taxes on rubber exports to aid ailing sector
PHNOM PENH (The Phnom Penh Post/ANN) - The government has reduced taxes on rubber exports to minimise the impact of a fall in the international price of the commodity.
The government has reduced taxes on rubber exports to minimise the
impact of a fall in the international price of the commodity.
A sub-decree signed by Prime Minister Hun Sen on Sunday stipulates
that exports of rubber valued under $1,400 per tonne are not taxable.
Shipments valued between $1,400 and $3,500 per tonne will be taxed $25
to $200 per tonne.
Long Sreng International Co Ltd general manager Heng Sreng
told The Post on Monday that the move aims to help companies mitigate
the drop in prices as a result of Covid-19. Sreng said demand for the
commodity in Malaysia and China has been affected.
“We appreciate the government’s initiative. This tax cut is very much
needed after prices declined sharply in China and Malaysia.
“The cut is not huge but it will help farmers and the industry
as a whole,” he said, adding that the price of rubber has fallen below
$1,300 per tonne from $1,400 to $1,500 per tonne in the past.
Long Sreng cultivates rubber on 4,500ha in Kampong Cham. The company exported about 7,000 tonnes last year.
“I think the outbreak will not last long, so demand will pick up again soon,” said Sreng.
Cambodia exported 282,071 tonnes of rubber last year, a 30 per cent
increase from 2018’s 217,501 tonnes, according to official figures. The
commodity reeled in $377 million in revenue last year, up 32 per cent
from 2018’s $286 million.
A total of 406,142ha of rubber were planted last year, of which 247,113ha were harvested.