Gov’t cuts taxes on rubber exports to aid ailing sector
Gov’t cuts taxes on rubber exports to aid ailing sector
The government has reduced taxes on rubber exports to minimise the impact of a fall in the international price of the commodity.A sub-decree signed by Prime Minister Hun Sen on Sunday stipulates that exports of rubber valued under $1,400 per tonne are not taxable. Shipments valued between $1,400 and $3,500 per tonne will be taxed $25 to $200 per tonne.
Long Sreng International Co Ltd general manager Heng Sreng told The Post on Monday that the move aims to help companies mitigate the drop in prices as a result of Covid-19. Sreng said demand for the commodity in Malaysia and China has been affected.
“We appreciate the government’s initiative. This tax cut is very much needed after prices declined sharply in China and Malaysia.
“The cut is not huge but it will help farmers and the industry as a whole,” he said, adding that the price of rubber has fallen below $1,300 per tonne from $1,400 to $1,500 per tonne in the past.
Long Sreng cultivates rubber on 4,500ha in Kampong Cham. The company exported about 7,000 tonnes last year.
“I think the outbreak will not last long, so demand will pick up again soon,” said Sreng.
Cambodia exported 282,071 tonnes of rubber last year, a 30 per cent increase from 2018’s 217,501 tonnes, according to official figures. The commodity reeled in $377 million in revenue last year, up 32 per cent from 2018’s $286 million.
A total of 406,142ha of rubber were planted last year. 247,113ha were harvested.
