Cambodia: Prospect of new tax causes concern among boat owners

• Jul 03, 2019

Tourist boat owners in Phnom Penh have expressed concern about a potential new tax, arguing the levy will be too big a burden for their businesses.

On Monday, officials from different ministries met to discuss the establishment of an inter-ministerial committee that will be charged with deciding whether or not to impose a use tax on boats.

The committee will also be charged with ensuring boat service providers fulfill their tax responsibility, possess all required documentation, pass technical inspections and refrain from overloading the vessels.

Bar Sa Lyna, 59, owner of Mong Say Tour Boat, told Khmer Times that given a recent dip in the number of customers and an increase in competition, a new tax could mean the end of her business.

Ms Sa Lyna’s boat is docked in the riverfront, in front of the Council for the Development of Cambodia, a spot she shares with a number of other similar businesses.

She says she already pays about $100 a year to renew its business license with the Ministry of Tourism and use the waterway, among other charges.

“Now, we can still survive. However, if we are asked to pay tax on the vehicle, we will go bust,” she said, adding that the current level of business is low compared to a few years prior.

She charges $15 per hour to use the boat, which tourists can ride in a scenic trip along the Tonle Sap River that passes in front of the Royal Palace.

Vich Thou, 38, owner of Paris Le Mekong, a business consisting of three boats, also expressed worry. The amount that could potentially be charged has not been disclosed, but Mr Thou says any additional expense may threaten his livelihood.

He says revenue from his business has seen a notable decrease in recent years. Mr Thou said most of his customers are Westerners but believes that a rise in the number of Chinese tourists is causing a fall in the number of visitors from Westerns nations.

He said he has been in business for 15 years, operating in accordance with the law and paying all applicable taxes and fees.

The proposed inter-ministerial committee to regulate the sector will be composed of officials from the ministries of Tourism, Public Works and Transport, and Economy and Finance, as well as the General Department of Taxation, the National Police, and the General Department of Customs and Excise, among others.

According to Ly Vuthy, president of Phnom Penh Tourist Water Transport Association, there are more than 40 tourist boats in Phnom Penh, operated by about 30 families.

Source: https://www.khmertimeskh.com/50620240/prospect-of-new-tax-causes-concern-among-boat-owners/