Customs Clamps Down on Car Import Tax Evasion

Customs officials have collected more than $7 million in a month from 542 cars imported illegally without paying duty. Photo from General Department of Customs.

Duty of $7m collected in a month



PHNOM PENH--Customs officials have collected more than $7 million in a month from 542 cars imported illegally without paying duty.



Kun Nhim, director-general of the General Department of Customs, said that from September 9 to October 26, taxes and duties were paid voluntarily by owners whose vehicles had been imported but whose origin was hidden using various license plates.



"In 40 days, 352 owners of left-hand drive vehicles came to pay taxes, equivalent to $5.8 million in tax revenue," he said.



Owners of another 190 right-hand drive vehicles came to pay deposits worth a total of $1.5 million while their cars were converted to left-hand drive.



In Cambodia, there are nearly 10,000 left and right-hand drive vehicles which have been imported in the name of the Royal Cambodian Armed Forces and National Police which were not subject to taxes and which carry official license plates. Included in the total are cars and trucks which have been imported illegally.



Kun Nhim urged the remaining owners of left-hand drive vehicles on which no duty had been paid to fulfill their tax obligations before December 31 to receive a 10% discount and a preferential rate. Owners of right-hand drive vehicles that have been modified to the left will have until June 30, 2022.



From July 1, banned right-hand drive vehicles will be destroyed or dismantled for parts. Owners of left-hand drive vehicles on which duties have not been paid will be required to pay taxes and duties, along with fines.



The General Department of Customs and Excise collected $1.7 billion in taxes in the first nine months of 2021 while revenue from vehicles and machinery amounted to 41.9% of the total.



Cambodia’s revenue from taxes and duties fell by 6% to $3.8 billion in the first nine months of 2021. The General Department of Taxation collected more than $2.1 billion while the General Department of Customs and Excise brought in $1.7 billion.


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