The General Department of Taxation (GDT) under the Ministry of Economy and Finance has instructed its officials across the country to continue to educate the public about updates to the laws and regulations pertaining to capital gains tax. Officials should be preparing themselves to begin collecting these taxes early next year.
In an online workshop organised by the GDT early last week, its deputy director Ken Sambath said that tax reforms have lead the GDT to be considered a leading public institution. Through the development and implementation of information technology systems for data management and tax collection, the GDT has developed an “excellent” reputation, both domestically and abroad.
“The GDT pays close attention to the government’s reform of the tax sector. In line with its public financial reform programme and revenue collection strategies, we aim to meet the annual tax collection plan, and contribute to the operating expenses of the Kingdom’s ministries and other state institutions,” he said.
He added that once ministries and institutions have enough money for operations, they can provide better public services. The funds generated by the government’s various reforms will assist the Kingdom to become an upper middle-income country by 2030 and join the high-income group by 2050, in line with the vision set out in phase IV of the government’s Rectangular Strategy.
Dy Chanthy, head of the GDT’s Capital Gains Tax Bureau 2, said at the conference that it is the duty of every citizen to contribute to the government budget for its operational expenses through taxes. The expenditure generated by the reforms will enable the government to offer improved public services, increase people’s living standards and boost socio-economic development.
“Every citizen has to pay taxes. Every country is composed of its citizens, with the government acting as an engine that drives the country forward. In managing and leading the country, the government has several important roles and responsibilities that ensure the country runs smoothly and successfully,” she said.
In 2022, the GDT postponed the collection of several taxes from the private sector in Cambodia for two years. The postponement was intended to contribute to the post-Covid-19 recovery of the economy, and facilitate reinvestment. The postponement ends on January 1, 2024.