PHNOM PENH: The General Department of Customs and Excise has released a notice on the implementation of updated tax collection principles and mechanisms for existing tax-free cars in Cambodia.

The Department reminds all relevant car owners to be aware that the preferential tax deduction of 10% for left-hand drive vehicles has a deadline of 31 December 2021, after which, car owners are expected to pay their taxes and duties in full without receiving a deduction.

They state that although entry and payment of taxes and duties will continue until 30 June 2022, from 1 January 2022 onwards, authorities may begin implementing checks for tax and duty payment for cars in public places.

In the case of right-hand drive vehicles, the Department states that the 10% tax deduction will continue until 30 June 2022, in order to give car owners time to switch to left-hand drive vehicles in accordance with Cambodian road traffic laws, which will begin implementing stricter measures from 1 July 2022 onwards.

The Department reminds relevant car owners that after 1 July 2022, those who have not paid their taxes will be subsequently taxed and fined, and all right-hand drive vehicles will be disassembled or destroyed according to the procedures in force. The Department hopes that all owners of all types of cars will hurry to meet the tax and import duties on time.