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CAMBODIA: Increased Taxes on Used Vehicle Imports Mooted to Boost Domestic Automotive Industry

Used cars manufactured before 2000 and imported into Cambodia are set to face increased taxes and stringent technical and environmental tests. While the government has yet to specify the proposed tax increase, the move is part of its bid to provide a boost to Cambodia’s fledgling domestic automotive industry.

Further, the Cambodian government has announced a 50% cut in taxes for car manufacturers that choose to establish vehicle assembly plants in the country. The development of such facilities, however, will be hampered by a severe shortage of auto parts manufacturers, with the shortfall currently met by higher levels of auto parts and accessories imports.

Content provided by Picture: HKTDC Research
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