Original report from Phnom Penh
09 December 2009
Confusion and hesitation over a new law on property taxes have shocked the country’s real estate market, which has yet to recover from the global economic downturn, financial analysts say.
According to the law, passed by the National Assembly earlier this month, taxes will be levied on land, houses and buildings worth more than 100 million real, or $25,000, but experts worry misunderstandings over the law will interrupt the recovery of the stagnant real estate market.
Chan Sophal, president of the Association of Cambodian Economists, said the new tax law had confused people who worry they have to pay a lot of money.
“Educating people about the tax is really important right now, or it will give a negative impact on real estate, as people take a step back or sell their property at a low price,” he said.
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