PHNOM PENH: On September 15, Director-General of Taxation Kong Vibol announced to the media that the 20% capital gains tax, passed in 2020, would finally take effect on January 1, 2024 after being postponed in response to the Covid-19 crisis. The tax applies to anyone selling real estate that has appreciated in value since it was bought. The announcement faced criticism online from people complaining that the new administration was asking too much of its people and businesses, who are already suffering from price inflation.

The General Department of Taxation issued a statement this week, calling the complaints “opposition slander” and said that the Royal Government is working hard to attract domestic and foreign investment while constantly considering the well-being of the people. It retracted the previous January 1 date and said that the tax would be postponed again to later in the year.

On September 27, Prime Minister Hun Manet weighed in on the issue, assuring people that his administration would think carefully and study the risks of how to impose the tax and when. He emphasized that the capital gains tax reform bill was passed three years ago, but that it had been suspended to adjust to the economic climate brought on by the pandemic.

He ordered the Minister of Economy to conduct a detailed study on the matter and said he would be meeting with businesspeople in November to address their concerns and reach solutions. He then confirmed that no details on imposing the tax have been determined.