By Daniel Ten Kate
Jan. 26 (Bloomberg) -- Cambodia, reliant on overseas aid to finance a quarter of the national budget, said it will extend tax breaks for clothing manufacturers and invest in power plants as a cash shortage restricts its ability to provide economic stimulus.
“We cannot distribute cash to the people,” Hang Chuon Naron, secretary-general of the Ministry of Economy and Finance, said ... “What we can do is give targeted tax cuts to garment factories and spend more on infrastructure ...”
Cambodia needs to reduce business costs because it can’t afford the stimulus measures adopted by richer neighbors Thailand, Singapore and Malaysia. The International Monetary Fund said .... Click to read more.
1 comment:
Such a tax cut is a good incentive & could be growth-enhancing but more jobs need to be done. Business costs remain very high while labor productivity remains very low campared to neighboring countries.
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