Wednesday, December 12, 2007
Cambodia getting more expensive
i have noticed alot lately that there is a energy tax being applied everywhere in Cambodia and the world, but it seems that it is seen more readily here as one of the ways that the Cambodian goverment taxes is through the gas pump.
From a tax collection stand point it makes sence as you get everybody and every industry by taxing energy. The problem is that you are also raising costs accross the board and not getting any added value. It makes more sence to tax products and industry after they have had a chance to make money with the little bit of capitol that is aailable, so what happens is that companies cannot afford to expand faster as they are just keeping pace with the increases in energy. for a lot of business in Cambodia if the energy was taxed later they would be able to expand which means more jobs and more taxs eventually comming in. It is sad that this is the way it is becuase the ones that lose the most opertunities are the ones that can least afford it.
From a tax collection stand point it makes sence as you get everybody and every industry by taxing energy. The problem is that you are also raising costs accross the board and not getting any added value. It makes more sence to tax products and industry after they have had a chance to make money with the little bit of capitol that is aailable, so what happens is that companies cannot afford to expand faster as they are just keeping pace with the increases in energy. for a lot of business in Cambodia if the energy was taxed later they would be able to expand which means more jobs and more taxs eventually comming in. It is sad that this is the way it is becuase the ones that lose the most opertunities are the ones that can least afford it.
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