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Customs Ready to Apply for Tax Extension for Existing Right-hand Drive Vehicles

PHNOM PENH: Director-General of the General Department of Customs and Excise of Cambodia, Kun Nhim, spoke at a press conference on the results of the existing tax collection in the country on the morning 5 October, Customs are asking for guidelines from the Royal Government in deferring the payment of taxes on existing right-hand drive vehicles in Cambodia, while October 8 is the current deadline. But this deferment is only for the right-hand drive vehicles registered with the Customs.

Kun Nhim said: “We plan to make a proposal to the management to review and decide on the extension. For how long, we will ask for feedback. We have also carefully considered the situation and why the customs authorities requested the extension."

The General Department of Customs and Excise of Cambodia made this proposal after seeing the difficulties of right-hand drive car owners.

"The rainy season, we all know, and land construction is declining, a business that cannot be used to pay taxes," he said.

Kun Nhim stated that the request for this concession is so that the right-hand drive car owners who have already registered but have not yet paid the tax will be able to save money to pay the tax.

According to Kun Nhim, as of the evening of 4 October 2022, there was 5,976 duty-free right-hand drive vehicles in Cambodia that had come to fulfill their tax and duty, out of a total of nearly 10,000 existing right-hand drive vehicles registered. Revenue from the collection of taxes on nearly 6,000 right-hand drive vehicles amounted to nearly $ 20 million.

The General Department of Customs and Excise of Cambodia confirmed that most of the right-hand drive vehicles are trucks, including trucks transporting, soil, gravel, and sand, manufactured since 1990.

According to Kun Nhim, the current customs officials have prevented the import of right-hand drive vehicles at the border better than the cases before. He said that if the right-hand drive vehicles were found smuggled into Cambodia, the authorities will confiscate them immediately.

He emphasized that the Royal Government has favored and postponed the payment of taxes and duties on existing tax-free vehicles many times. During the meeting with the delegation of the ASEAN Para Games on 6 July 2022, Prime Minister Hun Sen decided to allow existing right-hand drive vehicles to pay their tax without having to adjust the position of their steering wheel, to alleviate the difficulties experienced by car owners. He stressed, however, that this applies only for car owners of right-hand drive vehicles that are already in the Kingdom of Cambodia. Any newly imported right-hand drive cars after 6 July will be immediately seized.

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