Increased export taxes and other fee hikes on second-hand clothing are threatening profits for Cambodian vendors selling their goods in Thailand’s Roung Koeu market near the Poipet border crossing.
Vendors report that since May, Thai customs officials have doubled the duty on clothing to about $25 per 100 kg, forcing them to sell at prices that are often out of reach for customers.
“I can’t make money today because no clients buy my clothes,” said vendor Sok Kong, who made about $75 per day before the tax increase but now only clears about $25.
“Some days I cannot make money at all. I will stop my business temporarily in the future,” Sok Kong said.
Added to this, vendors say, is an approximately $1.75 fee increase imposed by the private Cambodian company for every 100 kg of clothing it transports to Thai markets for vendors here.
Several other vendors also said they have been hit with near devastating losses since the export taxes increased and customers have disappeared.
“I don’t know what I will do if this lasts much longer,” said Chev Yeak Lang, who has sold second-hand clothes at the market for six years and has two relatives who have already closed shop due to the higher taxes.
“How could they stay [open]?” she asked, speaking of her relatives. “They could not sell, they had no clients.”
Sok Kong said he and other business people at the market plan to protest the tax increase.
They also want to complain about the Cambodian company responsible for transporting their goods to the market. They say it was given that contract unfairly by Banteay Meanchey provincial officials in a closed bid process, Sok Kong said.
“When the winner was recently announced publicly, we were very surprised. We could not accept it at all,” he said.
