The Cambodian Council of Ministers on Friday approved a draft property tax for Phnom Penh that will eventually be extended to provincial towns, local media reported on Saturday.

The draft policy, to be submitted to the National Assembly, sets out three separate taxes on property sales, property rentals and on unused land, according to The Cambodia Daily.

Sellers of land would pay four percent of their sale price in tax to the government. Landlords would pay 10 percent of rents collected over about 120 US dollars a month. Owners of unused land would pay two percent of the land's value at unspecified intervals.

Property belonging to international organizations, used for agriculture or worth less than about 24,000 dollars are exempted.

Economist Kang Chandararot said the tax will benefit Cambodia if properly implemented. "This should have been done a while ago. It can help the government reduce the damaging tax on gasoline," he said.

National Assembly members, major donors and economists will discuss the tax on Thursday.

Source: Xinhua