The government is considering increasing taxes on used car imports, and encouraging auto companies to set up assembly plants in Cambodia.
Kun Nhem, director-general of the General Department of Customs and Excise (GDCE), said at the Auto Show 2018 on Friday that higher taxes on used car imports would encourage more people to consider a new car, which would help the environment and be safer and more economical.
He did not say how big the tax increase could be.
“We don’t have a specific policy yet on adding taxes to used cars, but we are considering limiting old car imports,” he said.
“We will consider the date of manufacture of old cars.
“We won’t ban the import of used cars but for cars made before 2000 we will increase taxes to stop grey dealers from importing very old cars which impact the environment and affect consumers’ safety,” Mr Nhem said.
“Import taxes, VAT and special taxes for used cars are not changing.
“Old or used cars must pass technical inspections after paying taxes. The oldest cars are more frequently sent for technical inspections while new car inspections are conducted every two years,” he said.
Speaking to auto representatives from Porsche, Honda, Nissan, Isuzu, Ssangyong, Mitsubishi and Foton at the Auto Show, which concluded yesterday, Mr Nhem said the government was offering a 50 percent tax cut for manufacturers who assembled finished vehicles in the country.
He said that there were about 300 to 500 parts and components to assemble for one car.
“The cut of 50 percent in taxes is to support local people by giving them more work through manufacturing assembly, and to support and facilitate companies which assemble new cars in the country,” Mr Nhem said.
