Logo of Phnom Penh Post newspaper Phnom Penh Post - Gov’t to raise 20% more tax revenue

Gov’t to raise 20% more tax revenue

Content image - Phnom Penh Post
Minister of Economy and Finance Aun Pornmoniroth said at the National Assembly on Tuesday. Supplied

Gov’t to raise 20% more tax revenue

As part of efforts to achieve a sound macroeconomy, the government plans to increase the revenue raised from taxation and customs and excise by more than 20 per cent next year.

The 2020 national budget law approved on Tuesday targets a 28.1 per cent increase in revenue collection from customs and excise next year, reaching around $2.87 billion, or 17.72 per cent of gross domestic product (GDP).

Revenue from tax collection would increase by 21.3 per cent to more than $2.33 billion, accounting for 7.93 per cent of GDP, it said.

“The government will not impose new taxes or increase existing tax rates,” the law says.

Speaking at the National Assembly on Tuesday, Minister of Economy and Finance Aun Pornmoniroth said that while the Kingdom’s economy remained strong, the government had to spend more to sustain the economy and boost domestic revenue via the collection of tax and customs duties.

“The government has achieved good results in public financial management with the sound, sustainable and efficient collection of all types of taxes.

“This proves the strength of the Cambodian economy, despite the global economy facing greater risks than before. Higher revenue collection helps strengthen Cambodia’s budget independence, and gives the government greater control,” Pornmoniroth said.

Kong Vibol, the director-general of the ministry’s General Department of Taxation (GDT), could not be reached for comment on Wednesday.

However, he said in a report released last month that the key driver of revenue growth over the past year has been the government’s efforts in implementing its Rectangular Strategy and Revenue Mobilisation Strategy, which focus on strengthening fiscal administration reform.

Such measures include “the modernisation of the tax administration’s core functions and support of the General Department of Taxation, such as the introduction of the e-VAT system”, Vibol said.

The government is also strengthening tax administration, adopting information technology to prepare audits and promote a tax culture among taxpayers, he added.

Last month, the International Monetary Fund (IMF) Staff Completes 2019 Article IV Mission to Cambodia press release said the Kingdom’s robust revenue performance continued, with – thanks to strong administrative efforts – tax revenue nearing 19 per cent of GDP last year.

“Looking ahead, strong implementation of the authorities’ new Revenue Mobilisation Strategy 2019-23 should help sustain revenue growth through tax policy and revenue administration reforms,” the IMF said.

It said Cambodia’s public debt remained low, at 28.6 per cent of GDP last year.

The IMF said the Kingdom was expected to remain at low risk of debt stress despite an increase in both debt disbursements and public-private partnerships to finance needed infrastructure investment.

The government collected some $4.567 billion in revenue from customs and taxation in the first nine months of the year, said a GDT report last month.

MOST VIEWED

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • PM declares ASEAN Para Games open

    The 12th ASEAN Para Games officially kicked off on the evening of June 3 at Morodok Techo National Stadium in Phnom Penh, with a spectacular opening ceremony featuring fireworks and performances by some of the Kingdom’s most accomplished talents. Tens of thousands of sports fans

  • Honda shutters Siem Reap football club

    Japanese football legend Keisuke Honda, the owner of Siem Reap football club Soltilo Angkor FC, has been forced to shut the club down, after it failed to attract sponsorship for the upcoming season. Honda, the former manager of the Cambodia men's national football team, said

  • Waterway job still pending for Kampot tourism port’s opening

    The search is still on for a contractor to expand and deepen the Kampot International Tourism Port’s waterway and deliver additional enhancements allowing safe access for larger vessels, nearly a year after the main construction work on the 4.25ha site was completed on June 30, 2022.