Government urged to reduce property transaction tax

The government should decrease its four percent tax on property transactions and instead focus more on the two percent tax for unused land, a real estate company director said.

Sung Bonna, president of Bonna Realty Group, told The Cambodia Herald that collecting the unused land tax would increase government revenue and discourage property speculation.

Many house owners complain that the transaction tax is too high and difficult to calculate.

Sung Bonna explained that while the tax was previously a mess, it is now based on market prices set by the government. “However, they are not accurate prices. House owners can sell their houses at higher prices," he said.

The Cambodian property market has been shrinking since the economic downturn in 2008.

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