Cambodia Slashes Withholding Tax for Domestic Airlines
In a move to support Cambodia’s aviation industry, Prime Minister Hun Manet has announced a major reduction in the withholding tax for domestic airlines. The tax rate, previously over 10%, has now been lowered to just 2%.
Why the Tax Cut?
The Cambodian government aims to ease financial burdens on airlines, helping them recover from economic challenges and maintain affordable airfares for passengers. The reduction is expected to:
✈ Lower airline operating costs
✈ Encourage investment in the aviation sector
✈ Boost domestic and international travel
Impact on Airlines and Passengers
With reduced tax expenses, airlines may have more room to reinvest in fleet expansion, service improvements, and ticket price stabilization. This move is part of Cambodia’s broader efforts to strengthen tourism and business travel in the region.
A Positive Step for Cambodia’s Aviation Growth
The decision reflects the government’s commitment to fostering a competitive and sustainable aviation industry. As Cambodia continues to develop as a key travel hub, this tax reduction could enhance connectivity and economic opportunities.
Stay tuned for updates on how this change will impact air travel in Cambodia!
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