A document obtained from the Finance Ministry on Tuesday revealed that Prime Minister Hun Sen agreed earlier this month to tax holders of the prestigious Okhna title, which is granted to people who contribute more than $100,000 to develop the country.
The document, written by Finance Minister Keat Chhon and signed Oct 3, proposed taxing Okhnas $10,000 a year for 15 years “in order to maintain the Okhna validity for life.” The tax would be used for the Commune Fund to promote grass-roots development, the document said.
At the bottom of the document, the words “agree with the proposal” were written next to Hun Sen’s signature, with the handwritten date, Oct 9.
But after the Council of Ministers meeting last week, Ngy Tayi, Finance Ministry undersecretary of state, told reporters that Hun Sen “made it very clear that the government has no policy to tax Okhnas.”
The proposal states, “In case of Okhna’s slowness, or if they do not pay the annual donation every year, they would automatically lose the Okhna title.” It adds, “There are about 200 Okhnas in the Kingdom of Cambodia at the present time, so if each Okhna pays [$10,000] a year, we would collect [$2 million] for the Commune Fund.”
The about-face apparently came after a report Thursday in the Khmer-language newspaper Rasmei Kampuchea (Light of Cambodia) exposing the proposed tax.
“The prime minister said there is no tax on Okhnas at all,” Ngy Tayi said Tuesday. “Maybe he changed his mind after the Rasmei Kampuchea newspaper repeatedly reported on the tax.”
CPP spokesman Khieu Kanharith said Tuesday that Hun Sen never agreed with the Okhna tax.
Hun Sen “got the news [of the tax] from the newspaper,” Khieu Kanharith said.
“At the Council of Ministers, he said that it is not right to tax Okhnas. He told the Ministry of Finance that the government must give thanks to people for giving money to develop the country.”
Khieu Kanharith said he had not seen the signed proposal.
Keat Chhon on Monday downplayed the proposed tax.
“It’s just an internal debate in the government,” he said. “After the debate, we decided to veto” the tax.
Upon hearing of the proposed tax last week, some Okhnas expressed dismay. “If I had known this condition, I would not have accepted the title Okhna,” said businessman Mong Reththy. “It is a large amount.”
Sok Kong, president of Sokimex, said last week it would be “impolite” to tax the title. “I am not a vegetable or other goods they can tax,” he said.