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Cambodia postpones levying profit tax on garment, footwear
Cambodian Prime Minister Hun Sen announced Wednesday the government would give an exemption on the profit tax for the kingdom's garment and footwear factories until 2015 in exchange for the 5 U.S. dollar increase of wage by the manufacturers to the workers.
"The manufacturers asked the government to delay taking the profit tax of one percent a month from them until 2015 so that they would give an additional 5 U.S. dollars per month to each of the garment and footwear workers for healthcare," he said during the 16th Government-Private Sector Forum.
"Now, I agree on that and the agreement will come into effect from January 2012," he said.
The government estimated the tax loss of 1.23 million U.S. dollars a month or 15 million U.S. dollars a year, he said.
"It is for the benefit of the workers to get additional 5 U.S. dollars for healthcare," he said.
The garment industry represented more than 90 percent of Cambodia's total exports. The sector has 262 garment factories employing 319,313 workers and 36 foot-wears factories with 56,643 workers, according to the reports of the Commerce Ministry.
Currently, the minimum monthly wage for a worker is 61 U.S. dollars.
xinhua
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