Locally Produced Cigarettes (បារី)

Lesson Summary-Locally Produced Cigarettes in Cambodia (Updated on 2022)

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Tax is levied once only  for domestic goods, and it is upon the sale from the factory if the cigarettes are locally produced.

Specific Tax (ST) rate for Locally Produced Cigarettes  in Cambodia is 20%.

Tax base for Cigarettes  = amount excluded taxes x 90%

Specific tax (for Cigarettes ) = Tax base x 20%

Example 1 

XYZ Factory in Cambodia produced and sold the following products:

-Cigarettes of $11,000 ( excluded any taxes) to ABC Company

-Cigarettes of $22,000 ( excluded any taxes) to Mr. A

-Drinking water of $1,100 ( excluded any taxes)

Required:

Calculate any specific taxes if any.

Answer 

Tax base for Cigarettes  = (11,000+22,000) x 90% =$ 29,700

Specific tax (for Cigarettes ) = $ 29,700 x 20%=$5,940 

Please note drinking water of $1,100 is not subject to specific tax.