Logo of Phnom Penh Post newspaper Phnom Penh Post - GDT collects over half a billion dollars in tax revenue from Jan-Feb

GDT collects over half a billion dollars in tax revenue from Jan-Feb

Content image - Phnom Penh Post
Traffic passes in front of the General Department of Taxation office in Phnom Penh. Hong Menea

GDT collects over half a billion dollars in tax revenue from Jan-Feb

The General Department of Taxation (GDT) collected 2.07466 trillion riel, or $512.26 million, in taxes in the first two months of 2022, surging by 22.69 per cent over the same period last year, according to its director-general Kong Vibol on March 14.

This represents more than 18 per cent of this year’s annual target of over $2.82 billion, as set by the Ministry of Economy and Finance – the GDT’s parent ministry – in the Law on Financial Management for 2022. For reference, the GDT collected $2.78192 billion in taxes last year.

The GDT collected $223.96 million through the online tax revenue data management system in February alone, or 7.94 per cent of the annual target.

Vibol noted that revenues from the five main tax categories recorded significant year-on-year gains last month, led by payroll tax at 23.17 per cent, followed by special tax (17.19 per cent), stamp duty (16.98 per cent), income tax (14.18 per cent), and value-added tax (VAT) at 5.52 per cent.

The GDT chief chalked up the tax revenue increases seen in January-February as “successful achievements” of the department.

“For 2022, in order to ensure the efficiency of tax collection to meet this year’s targets, all units of the GDT must continue to strengthen the implementation of measures, policies and fiscal administration.

“That includes: continuing to follow the recommendations of economy minister [Aun Pornmoniroth], enforcing the mandate to install flow meter systems at local breweries and non-alcoholic beverage production facilities, beefing up management of VAT refunds, managing and monitoring enterprises’ tax returns, and improving other functions,” he said.

Royal Academy of Cambodia economics researcher Ky Sereyvath attributed the tax revenue increases recorded in early 2022 to general economic recovery.

However, he voiced concern that economic growth could be dented by, among other things, blows to the transport sector as a result of spiralling global oil prices fuelled by the ongoing Ukraine conflict; the oil cartel OPEC’s apparent unwillingness to boost output faster; and the US Federal Reserve’s decision to cut its benchmark interest rate, which he said has led to rising inflation in the country.

Sereyvath predicted that even if the Cambodian economy misses its 5.6 per cent growth target this year, “it will not contract”, even when factoring in the effects of the sky-high fuel prices on domestic spending, and hence the retail and service sectors.

“And our exports will most likely face limited damage. In a nutshell, the economy will continue to grow, but perhaps not as much as expected,” he told The Post.

MOST VIEWED

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway