Government Extends COVID-19 Support Programs for Another Three Months

Government Extends COVID-19 Support Programs for Another Three Months

The government has extended its financial support programmes to aid the garment and footwear, travel bag, textile, aviation and tourism sectors and poor people for another three months. The extension covers the period of April through June 2021, according to a government statement released yesterday.

This is the eighth round of support from the government to the private and public sectors in response to the severe impact of the COVID-19 pandemic, especially that unleashed by the Feb 20 community event. That event involved four quarantined and COVID-infected women who bribed hotel security to escape from the Sokha Hotel in Phnom Penh, which allegedly sparked the outbreak.

The statement added that the government has released necessary measures in order to contain the spread of the virus and to support and stabilise the economy and businesses in affected sectors.

It added that, as in countries all over the world, Cambodia has placed orders for COVID-19 vaccines and rolled out its vaccine inoculation programme. The statement noted that while the vaccine buying and inoculation campaigns have started, the government is not yet able to say with 100 percent certainty that short-term prospects for the abatement of the spread of the virus or return to normal of the socio-economic situation are assured.

The Feb 20 community event has resulted in many positive cases of COVID-19 in the Kingdom, a particular worry since Cambodia has experienced its first COVID-19-attributed deaths. The majority of poor households remain very vulnerable because the effects of the outbreak are a direct challenge to their daily living standards.

The statement also said, “After scrutinising and thoroughly checking on the socio-economic, health, trade and investment and local and international frameworks, the government has decided to extend its financial support programmes in order to reduce the impacts of the Feb 20 community event, to validate the previous measures which will become invalid in the near future, to rehabilitate businesses to boost growth and to support the poor and vulnerable people through the cash assistance support programme.”

It added that the government has decided to continue to provide $40 per month for workers in the garment, textile, footwear and travel product sectors for an additional three months from April to June 2021. Factory owners in this sector also have to pay an additional $30 per worker (a total of $70 per worker per month).

The government will also continue to provide $40 per month to workers in the tourism sector, which includes hotels, guesthouses, restaurants and travel agencies for the additional three months. Enterprises and business owners in the tourism sector must continue to contribute on a voluntary and practical basis.

Hotels, guesthouses, restaurants and travel agencies registered with the General Department of Taxation that have business activities in Phnom Penh, Siem Reap, Sihanoukville, Kep, Kampot, Bavet and Poipet provinces will also continue to be exempt from all types of monthly taxes for the additional three months.

The government has decided to extend the minimum tax-exemption period for civil aviation operators until the end of June 2021 and the IDPoor scheme will also continue over this period.

The statement concluded saying, “The government will follow the COVID-19 situation and will prepare more measures to restore the country’s economy during and after the pandemic.”