Car sales sputter on tax hike

[geovalin]

Hor Kimsay

Authorised dealerships of new cars and trucks have said a recent increase in the specific tax on vehicle imports has put a dent in profits, with some dealers claiming sales have slowed since the tax hike went into effect in April.

The increase in the specific tax raised this category of excise tax from 50 per cent, to as high as 65 per cent on larger vehicles, pushing the aggregate levy on some new vehicles to nearly 140 per cent.

“The tax increase is discouraging some buyers to buy new cars,” said Seng Voeung, Ford division manager of RMA Cambodia, adding that sticker prices increased between 10 and 20 per cent depending on the size and model of the vehicle.

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