Financial sector calls for government to abolish 10% VAT on banking services

Banking and financial industry insiders have called on the government to abolish the 10% value added tax (VAT) on banking services, saying the tax will increase the burden on service users. The call came after the Ministry of Economy and Finance issued an order on May 25, which put fees on banking services including money transfers, loan assessments, and account maintenance services, as well as any service that traditionally generates revenue under fees and commissions, under the scope of the 10% VAT. Ly Hour, second co-chairman of the banks and financial services working group of the Cambodia Chamber of Commerce, said members of the Cambodia Microfinance Association, Association Banks of Cambodia, and Cambodia Chamber of Commerce (CCC) called on the government to eliminate the 10% VAT to ease the burden on people who use financial services. CCC vice president Lim Heng said the government should discuss alternatives with the private sector before implementing regulations and laws relating to banks and microfinance institutions to find common goals and common national interests. (Source: Khmer Times)