Wednesday, 2 December 2009

Cambodia's 2010 budget approved, draws criticism from opposition+


PHNOM PENH, Dec. 1 (AP) - (Kyodo)—Cambodia's National Assembly on Tuesday adopted the government's budget for 2010 despite resistance from opposition parliamentarians.

Through the 2010 budget law, taxes on properties will be levied for the first time in Cambodia, and expenditure for military will again be increased from this year's allocation.

Lawmakers from Cambodia's main opposition Sam Rainsy Party argued that the government should not levy taxes on properties and increase military spending amid the current economic difficulties faced by Cambodians as a result of the global economic downturn.

Instead, they suggested the government should make tougher commitments to collect taxes from other existing sources.

"The government should, instead of imposing taxes on properties, make a firm commitment to collect taxes from the entry fees to Angkor Wat temple, forest exploitation and economic land concessions, among other things," opposition lawmaker Yim Sovann said.

However, Cheam Yeap from the ruling Cambodian People's Party said the new taxes are necessary as the government faces a decline in revenues, investment and foreign assistance amid the global crisis.

Under the new law, a tax of 0.1 percent will be levied on properties that are valued at over 100,000 riel (approximately $25,000) by a Property Valuation Commission to be established by the Ministry of Economy and Finance.

The overall 2010 budget is 8.29 trillion riel ($2 billion) compared with last year's 7.26 trillion riel ($1.8 billion).

Some $175 million in the budget is allocated for the military whereas the defense allocation last year was $160 million, up from the previous year's $108 million.

Cheam Yeap said the increase in military spending is to secure the country's capacity to protect its sovereignty.

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