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Tax Incentives Approved

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Phnom Penh 8 March (Khmer Times/CNV) – Prime Minister Hun Sen, has made the following decisions which benefits trade and industry. 
Regarding the Foreign Account Tax Compliance Act (FATCA) of the United States: the representative from the private sector in the Working Group on Banking and Financial Services has requested the Royal Government to consider options for implementing this newly enacted FATCA of the United States.
Since this is an urgent and complicated issue, I think it is necessary to create a working group led by the National Bank of Cambodia with participation from all stakeholders to review options and address this issue
 Request for the reduction of VAT to 0% for the domestic supply of rice:
The request for the reduction of VAT to 0% is approved for supporting enterprise that engage in rice purchasing and milling activities for reselling to rice exporters as in the garment sector. Application, along with supporting documents such as supply contract and customs declaration needs to be lodged with the General Department of Taxation. The Ministry of Economy and Finance will issue Prakas for implementing this.
 Request for the VAT on domestic supply of rice husks to be further borne by the state
The request is approved. The Ministry of Economy and Finance will issue Prakas for implementing this.
Request for the VAT on import of silk thread to be further borne by the State
VAT for the import of silk thread will be borne by the state for two more years, until the end of 2015 and the Ministry of Economy and Finance will issue Prakas for implementing this. As a note, 0% VAT on import of silk thread has been implemented for three years.
Request for incentive on the import of raw materials for producing luggage, handbag and hat for export.
This request is approved. Incentives on the import of raw material for producing luggage, handbag and hat and similar products for export as provided to the garment and footwear industries. The Ministry of Economy and Finance will issue Prakas for the implementation.
Request for the reduction of container scanning service fee.
Further reduction of 20% of the scanning fee is approved. Scanning fee for 40ft container will decline from USD 40 to USD 32 and for 20ft container will decline from USD USD 25 to USD 20. The Ministry of Economy and Finance will prepare Prakas for implementing this by 1st April 2014.
Request for the approval of authorized economic operator.
I wish to instruct the General Department of Customs and Excise of Cambodia of the Ministry of Economy and Finance to invite business people with high compliance and good reputation to provide authorized economic operator status by 1st April 2014.
Request of the Working Group on Tourism (Group B) for the creation of more counters at busy border checkpoints.
The Ministry of Tourism must work with the National Police Commissariat to create more immigration counters at the international border checkpoint Poi Pet.
Request of the Working Group on Tourism (Group B) for (1) strengthening safety and security in urban and tourist areas, (2) ensuring vehicle drivers/riders to follow the Law on Land Traffic.
The Ministry of Tourism must work with the National Police Commissariat to explore all means to strengthen safety and security in urban and tourist areas.
Referring to traffic safety, the Royal Government endorsed the National Policy on Land Traffic Safety on 21 February 2014. Moreover, the Ministry of Public Work and Transport has prepared a new Law on Land Traffic, which is being reviewed by the Council of Legislator
Request of the Working Group on Tourism (Group B) for the diversification of domestic tourist attraction.
The Council for the Development of Cambodia must monitor actual progress of the approved island/beach investment project to ensure their compliance with agreed terms and condition. Any company found breaching the contract, the Council for Development of Cambodia/Cambodia Investment Board must propose the nullification of the contract. 
Request of the Working Group on Tourism (Group B) for the establishment of solidary sanitation movement joined by local authorities and the private sector as permanent event held once or twice a month in each tourist attraction in accordance with “Clean City, Clean Resort” campaign.
Presently, the Committee for Clean City Assessment is actively promoting this movement and the winning city will be declared in 2015. The Committee has recently reported the preliminary result of contest. With regard to sanitation in public zones, urban areas and cities, the Ministry of Tourism and the Ministry of Environment in cooperation with local authorities has created a permanent mechanism to achieve Cambodia Clean-Cambodia Green. Through this mechanism, we hope that cities will become cleaner and more sanitary, including better management of solid and liquid waste. Moreover, local authorities must arrange a permanent mechanism for ensuring sanitation in public zones under their territorial jurisdiction financed by revenues collected in their administrative zone.

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