Cambodia Announces Tax Relief To Cushion Rising Energy Costs

By Vijian Paramasivam

PHNOM PENH, March 21 (Bernama) -- Cambodia announced a slew of tax reliefs on petrol and diesel to reduce the public’s financial burden due to the rising cost of fuel following the conflict in West Asia.

In a statement posted on Prime Minister Hun Manet’s Facebook Saturday, he said the move is to support people’s livelihoods amid rising energy costs.

State media Agency Kampuchea Presse, citing the statement, reported that the government will continue to subsidise fuel prices by US$0.065 (RM0.26 sen) per litre. 

There will be a reduction of US$0.01 (RM0.039 sen) per litre when petrol prices exceed US$90 (RM354.55 ) per barrel in the global market, and diesel prices surpass US$100 (RM393.95) per barrel.

These measures are to counter rising fuel prices, which could spike up inflation, as the global energy market is facing severe volatility due to the raging war since February 28, with crude oil prices hovering above the US$100 mark. 

The prime minister announced more measures that include cutting the additional tax on petrol and diesel to zero and reducing the special tax on diesel from four per cent to zero per cent. 

And, lowering the additional tax on both petrol and diesel from 10 per cent to 4 per cent, while the government will absorb the remaining six per cent, said the state media. 

Meanwhile, under the new price structure effective March 20, one litre of regular petrol will cost 5,400 riel (US$1.35/RM5.32) while one litre of diesel is priced at 6,700 riel (US$1.67/RM6.58), according to the statement.

Cambodia has been grappling with fluctuating fuel prices. Prices of petrol had increased by about 40 per cent, while diesel prices shot up by 74 per cent since the war started. 

-- BERNAMA