Despite Booming Cambodian Logging, Tax Collection Down

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

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Forest Networking a Project of Ecological Enterprises

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12/11/98

OVERVIEW & COMMENTARY by EE

The following news article provides continued coverage and some

interesting details regarding the Cambodian over logging crisis, 90%

of which is occurring illegally. There are many more articles on the

situation in the Gaia Forest Conservation Archives, in the Asian

directory at http://forests.org/forests/asia.html

g.b.

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Title: Tax Collection down despite Logging Yield in Cambodia

Source: Xinhua

Date: December 11, 1998

PHNOM PENH (Dec. 11) XINHUA - Cambodian government collection in logging

revenue has dropped more than 60 percent this year as compared with the

previous year, despite a harvest of millions of dollars worth of trees.

In the first ten months of 1998, the government collected less than 5 million

U.S. dollars in logging taxes, according to a Finance Ministry draft budget.

In 1997, the government collected 12.7 million U.S. dollars.

And it seems realistic for the government to realize its plan to collect 19

million U.S. dollars in 1999, the Cambodia Daily quoted an environmental

watchdog as saying Friday.

However, Agriculture Minister Chhea Song, who oversees the forest industry,

defended the government's performance and its projections for next year.

"In 1998, there is lower income because of unstable political situation,

while some companies have not operated their concessions," he said.

In 1999, Chhea Song said, the government will seek to increase the tax on

tree cut by concessionaires from 14 to 54 U.S. dollars per cubic meter. It

will also allow only about 400,000 cubic meters of trees to be harvested, he

said.

World Bank-funded technical assistance teams estimated that more than 4

million cubic meters of trees were harvested in the last dry season, more

than 90 percent of it illegally. They said no more than 500,000 cubic meters

should be cut in a year if sustainability is to be achieved.

Widespread concern about Cambodia's logging operations, coupled with

corruption which prevents the government from collecting full revenue from

timber, have led to cutbacks in aid to Phnom Penh.

Prime Minister Hun Sen has vowed to take severe measures to prevent illegal

logging, including using the military to crack down on illegal loggers.

It was said there were 30 timber companies in Cambodia, but only a small

number of them operated in accordance with the law and regulations.

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