Wednesday, July 2, 2014

Acacia chip exports to receive tax break: PM


2 July 2014

The tax imposed on the export of acacia chips is to be abolished to help boost exports of the locally grown raw product.

PM Hun Sen said that acacia chips exported to Japan were now charged a 10% tax, when in the past the premium did not apply. The Ministry of Economy and Finance would review the product’s tax classification and announce changes shortly. “I have received the information yesterday [Sunday]. I contacted [Economy and Finance Minister] Aun Porn Moniroth and learned that it is because [acacia chips] were grouped together with the natural wood export category,” he said, referring to an export classification that attracts a 10% tax.

Cambodia exports acacia chips to Japan and China, where they are then turned in to paper products. The Kingdom’s acacia cultivation area is between 30,000 to 40,000 hectares of land, and a tax break would help increase that number. Vietnam can earn around $2.2 billion from exporting acacia. Cambodia could have this chance too if there is supporting policy from the government, just like this tax exemption policy.

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