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GMAC urges Cambodian govt to offset rising labour costs
Oct '17
GMAC urges Cambodian govt to offset rising labour costs
The Garment Manufacturers Association in Cambodia (GMAC) recently urged the government to help export-oriented manufacturers reduce the cost of conducting business to offset a higher minimum wage and workers benefit package due to be implemented from January 1. It requested the government to consider cutting the export management fee by half.

GMAC also urged for reduction in inspection fee of the Cambodia Import-Export Inspection and Fraud Repression Directorate-General (Camcontrol) to the same level as that of the customs department and postponing the implementation of the 1 per cent advanced profit tax for an additional five years, a Cambodian newspaper reported quoting a statement issued by the association recently.

The Camcontrol fee of $50 per container should be reduced to lower the logistics costs of the sector’s imports and exports, said Kaing Monika, GMAC deputy secretary-general. The inspection fee of the customs department is only $15.

The government suspended the 1 per cent profit tax in 2009 and has repeatedly renewed the order. However, the suspension is set to expire at the end of this year and authorities have given no indication of their intention. An end of the suspension of the 1 per cent advance profit tax would limit manufacturers’ ability to handle cash flows.

As Cambodia is now a member of the World Trade Organisation (WTO) and is not subjected to quota imposition anymore, the government’s export management fee (EMF) should be reduced, GMAC said.

The increase of the minimum wage would likely see the majority of GMAC members struggle to remain profitable, Monika added. (DS)

Fibre2Fashion News Desk – India

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