Cigarettes,Cigars , Alcoholic Beverages Sold in Entertainment Place

Specific Tax for Cigarettes, Cigars , Alcoholic Beverages Sold in Entertainment Place-Cambodia Tax (Updated on 2021)

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Cigarettes, Cigars , Alcoholic Beverages (beers, wines and other Alcoholic Beverages ) and other goods are sold in entertainment service place are subject to specific tax rate at 10%.

Term “Entertainment services” included concerts, music, soundtracks, stage shows … massage, steam, Sauna, Car Racing, Motor Racing, Snooker, Bowling, All games and Hockey.

Because Cigarettes, Cigars and Alcoholic Beverages are subject to public lighting tax (PLT) and PLT for resale of Because Cigarettes, Cigars and Alcoholic Beverages are tax base rate at 20%.

To calculate specific tax, we need to do the following three steps:

1. Tax base = amount excluded taxes
2. Tax rate = 10%
3. Specific Tax =Tax base x 10%

Example 1 

ABC KTV Company made revenue ( excluded any taxes ) from  Sky Bar room as follows:
– Cigarettes of $1,100.

– Cigars of $2,200.

-Beers of $3,300.

-Wines of $4,400.

-Wines Brand X  of $11,000

-Other Alcoholic Beverages of $5,500.

Required

Calculate specific tax if any.

Answer 

To calculate specific tax, we need to do the following three steps:

1. Tax base = 1,100+2,200+3,300+4,400+11,000+5,500=$ 27,500

2.Tax rate = 10%

3. Specific Tax = Tax Base x Tax rate =27,500  x 10%= $ 2,750