ដើម្បីការសិក្សាស្រាវជ្រាវ និងអភិវឌ្ឍន៍
How tax on income/salary is used?
Dear all,
I am interested to know how income tax or salary tax that each individual Cambodian has to pay to the government tax and custom unit be used to improve social services. So far, I have not heard anything about how revenue, in particular from income or salary tax, was used whether to improve social public services (such as health service, education service or commune/sangkat works) or to provide pension to the payers when they are in retired age. I have many arguments with my colleagues with regards to the use of tax. To me, I still do not see any benefit in paying income/salary tax; while others said that the revenue in particular from income/salary tax was used to improve high priority areas such as physical infrastructure.
Please share me your thought about this and I would very much appreciate if you could share any related papers on this issue. :-)
Views: 177
Replies to This Discussion
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Permalink Reply by HAK Sochanny on -
Dear Monireth,thank you very much for your response. There is figure posted on department of custom and tax, yet, the figure is too general to understand. It has only overall figure of revenue to be spent on education sector (in percentage), health sector, agriculture development, and so on.
As a Cambodian citizen, I still do not enjoy public services offered by government institutions. It is very much unequal distribution of service meaning rich get better service while poor were not served properly. I was treated to bad when I go to government hospital. With regards to pension, there is no information at all that the tax will be used to pay you when you are retired. Let alone, social fund to protect poor from vulnerability. However, there are things to be optimistic. We should try to find way how we can help our RGC to be transparent. :-)
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Permalink Reply by Soriya Yin on -
Maybe we need to form tax payer association to have stronger voice how our income tax is spent? Some of us pay a lot of income tax, much more than salary the government pay for their public staff.
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Permalink Reply by same An on -
a small actual story should be paid attentions for any decisions in the pileline.
-after finishing high school from a distant area, i started bachelor's degree of land Management and Land Administration with financial assistance from my poor family, with only a widow mother having three children.
-when joining the school, i have to pay tuition fee, or i will have no chance to have today.
-my mother has only one hectare of farmland. she worked hard to save money for support my study in PP.
-i ride my small bicycle to school. there are many times that i did not eat, because i have no money to buy food.
-fortunately, once i graduated my bachelor's degree, i also have a job.
-my first salary is of un-exspensive value, but it is also my first day of paying tax.
-who could help me when i had no food to eat? and who can see my hardship that time? the government? it's a shameful.
-who could provide food for me, when i was hungry, cried for food and badly needed food for only life?
-who could help me, if this time i have no job? don't tell me the government helps me indirectly with creating the job (it's only pretended act).
this is only a short view involving the salary tax.
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Permalink Reply by HAK Sochanny on
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Dear An, it is nice to have read your interesting story. You story gives a lot of life lesson and at the same time critical points for the government officials. After reading your story, i am so impressed by your patience and efforts to overcome hardship.
I personally think that the government should create social fund ( such as special fund for poor students, loan for university students-students will pay back after they get a job through tax) and improve quality of public services.
I also have to pay tax and I do not see any return from my tax payment. I was told by a friend that tax is used to improve public transportation, but when building a small street in front of my house, i have to pay. I have to pay road fee on national road 4, i have to pay to government civil servants such as sangkat staff or khan staff and I even have to pay more if I want the works done in short time.
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Permalink Reply by Sothyro on -
A common saying in the developed countries and perhaps is true to many countries is 'Born free... Tax to death...'. With this expression, It can be seen that not only the developing countries (including Cambodia) that the tax on income is required by the government but also the developed countries as well.
The type of the income tax can be progressive, proportional or regressive. The application may vary depend on the country and to compare how well the tax is used in one country to another is still in debate. Therefore, academically speaking, it is hard to claim whether the country is using the income tax effectively.
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Permalink Reply by HAK Sochanny on
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Thank you very much, Sothyro, for responding to this topic. I am glad to hear from you and i have just learnt that you passed the ADS to Australia. Though it is belated to say congratulation, I share my excitement with you and congratulation!
Using income tax effectively or not effectively deserves a lot of debate. However, it this immediate term, we need rule of law. For example, if corruption law is adopted and effectively implemented, the revenue leakage (revenue from income tax in particular) will less likely to happen, thus, public services would be improved gradually. This is just only my assumption. :-P
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Permalink Reply by Sothyro on
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The problem here is systematic due to its complexity in terms of government, states, maturity of decentralization and legal pluralism when enforcing the law.
I think the transparency and simplicity is a concern as well such as the complicated tax codes. Because the problem might involve not only the illegal activities like efforts not to pay the tax but also the legal utilization of the tax as well 'Tax avoidance'. The consequence is the lost in revenue and even create additional dead-weight costs.
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