Legal and Tax Updates

18 Jan

Legal Update: The Installation and Control of Meters for Beer and Non-Alcoholic Products of Local Producers

By Uncategorized

Issue: No. 005P/18 January 2021

On this 12 January 2021, the Ministry of Economy and Finance “MEF” issued a Prakas on the installment and control of meters for beer and non-alcoholic products of local producers. This Prakas covers all factories under the control of Department of Large Tax Payer that produce beer and non-alcoholic products in Cambodia. Below is the summary of the Prakas.

Purpose of the Prakas

The Prakas is intended to set out the rule and procedure on the control of meters for the locally produced beer and non-alcoholic product, and to strengthen all relevant tax collection, particularly the special tax on beer and non-alcoholic product.

Coverage of the Prakas

This Prakas shall apply to all factories under the control of Department of Large Tax Payer that produce beer and non-alcoholic products in Cambodia.

Definition

Meter shall mean flowmeter, conductivity meter, and field control box.

Key Obligations of Producer

  1. All producers shall install the meters for beer and non-alcoholic products based on the location and technical requirement as instructed by General Department of Taxation (“GDT”)
  2. All producers shall always put flowmeter and conductivity meter at all packaging production line.
  3. All producers shall prevent any loss, damage or information cheating, and shall regularly do maintenance work on meters so that it works properly.
  4. All producers shall promptly report to GDT in case of nay loss, damage, broking, not-working occur to the flowmeter, conductivity meter, field control box, security lock, security shield or data accuracy.
  5. All producers shall seek prior approval from GDT before any changing of location of the flowmeter or conductivity meter or field control box.
  6. All producers shall allow tax official to directly check or access to the information system at any time.
  7. All producers shall have enough reserve of meter with same standard for any emergent replacement need.
  8. Flowmeter and conductivity meter will be checked on its accuracy of measuring result once a year or at any time by tax officials or technical controller recognized by GDT.
  9. Meters shall be locked with security lock and security shield by tax official.

The Calculation of the Produced Volume

All the data collected from the meter will be used and analyzed by the GDT for the calculation of the amount of produced beer and non-alcoholic products. The lost beer or non-alcoholic resulting from leaking during packaging and other reason shall not be more than 1.5%.

Control

Tax official at the beer and non-alcoholic production factory and any assigned tax official shall be responsible for controlling the meters and collect information on the amount of produced volume for the purpose of tax collection.

Penalty

Without including other penalties, the none-putting of meters, the cheating, or the modification of flowmeter shall be considered as the obstructing of the implementation of law on tax, as mentioned in article 128 of law on tax.

We hope that the above legal update is helpful for your investment and help you to invest more confidently.

If you have any question or need any assistance with regard to the above matters, please feel free to contact us at contact@sithisak-lawoffice.com or (+855) 23 6373 168.

Disclaimer: The article is merely for general information purposes. It does not constitute a legal advice on the subject matter.

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