Logo of Phnom Penh Post newspaper Phnom Penh Post - GDT revenue surges 29% in Jan-Jul

GDT revenue surges 29% in Jan-Jul

Content image - Phnom Penh Post
The General Department of Taxation (GDT). Hong Menea

GDT revenue surges 29% in Jan-Jul

The General Department of Taxation (GDT) on August 15 reported that January-July 2022 revenue was just over two-sevenths higher year-on-year, which observers credited to more straightforward and effective controls and implementation thereof, coupled with the rising use of a widening array of digital tools and solutions.

The GDT said in an August 15 press release that it collected 8.951 trillion riel, or $2.210 billion, in the first seven months of this year, up by 1.990 trillion riel year-on-year, which is equivalent to $491.29 million or 28.6 per cent.

This represents 78.39 per cent of the annual target set by the Law on Financial Management for 2022, at 11.419 trillion riel or $2.820 billion.

GDT director-general Kong Vibol said in the release that tax collection management has remained healthy in the 31 months to July 2022 despite the risks posed by uncertainty and changes in geopolitical issues and the global security and economic realities that influence the Cambodian economic situation.

He pointed out that the department’s revenues “always” exceed the targets set by the financial management laws and fulfil resource requirements for government spending, especially during the Covid-19 battle.

For reference, the GDT said it collected 11.267 trillion riel ($2.782 billion) in revenue last year, outstripping the annual target of 9.084 trillion riel ($2.243 billion) set in the Law on Financial Management for 2021 by 2.182 trillion riel ($538.85 million) or 24.02 per cent.

Vibol attributed the growth in collection figures to efforts aimed at raising revenue from various sources, and reinforcing good governance and good administration to prevent losses through loopholes and other means.

He also cited an overall “adherence to a proactive spirit”, offering as a primary example the pre-Covid development and launch of digital platforms and support systems powered by emerging technology, highlighting E-Filing, ToI E-Filing, E-Payment and the GDT Tax Prefiling App.

Speaking to The Post on August 16, Hong Vanak, director of International Economics at the Royal Academy of Cambodia (RAC), said GDT revenues have witnessed an enduring uptrend, which he ascribed to clearer and more effective revenue collection controls, especially those concerning stamp duty, start-ups and other categories of taxpayers.

Vanak suggested that this trajectory signals a healthy rebound in economic activity as the Kingdom normalises.

“Increased tax revenues will play a crucial part in enabling the government to fund public works such as construction and development in all areas, repay creditors, and also save for reserves,” he added.

And new investment inflows will further boost the GDT’s coffers, he said, adding: “As the economy improves, tax revenues will rise in tandem.”

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a