Cambodia puts nearly US$500 million towards energy price relief
The measures include per-litre fuel subsidies and cuts to special taxes and value-added tax on petrol and diesel.
Prime Minister Hun Manet said Cambodia's spending to ease the impact of higher oil costs on fuel and electricity prices had reached nearly US$500 million. Without subsidies and further tax relief, fuel prices could have been 9-10 per cent higher, he said.
Manet gave the figures during a graduation ceremony held by the University of Health Sciences alongside its 80th anniversary celebrations. He said the support was financed through customs and tax receipts, and that the nearly US$500 million excluded spending on other problems.
Fuel support includes a continuing subsidy that lowers the price of each litre by 6.5 US cents. Another 1 cent per litre reduction was added when international petrol prices went above US$90 a barrel and diesel exceeded US$100 a barrel.
The government also eliminated additional taxes on both fuels as international energy, transport and insurance costs climbed. It lowered petrol's special tax to 15 per cent, compared with the previous 30 per cent, and abolished diesel's 4 per cent special tax.
For value-added tax, the petrol rate was set at 4 per cent rather than 10 per cent, while diesel's 10 per cent rate was removed. The remaining tax burden is being covered by the government, amounting to 6 per cent on petrol and 10 per cent on diesel.
