Logo of Phnom Penh Post newspaper Phnom Penh Post - More work needed at the tax dept, JICA says

More work needed at the tax dept, JICA says

More work needed at the tax dept, JICA says

The General Tax Department of Cambodia (GTD) needs to improve a number of administration processes to enhance revenue collection and make a greater contribution to the economy, a recent study released yesterday by Japan International Cooperation Agency (JICA) reveals.

Speaking at a workshop on the modernisation and automation of tax administration yesterday, Izaki Hiroshi, chief representative of Japanese development agency JICA, said that while Cambodian tax revenues have increased year on year, the amount is still well below the country’s potential.

“In order to meet the needs of the Cambodian people for better quality of public services – such as health, education, water, electricity – we need to improve the tax system, tax administration and tax policy,” he said.

Hiroshi said both technology and business processes needed improving to improve revenues and help fund social spending.

“A solid fiscal base sustained by tax revenue is the foundation to provide good quality of public services to the people,” he said.

Yesterday’s meeting covered a wide range of issues, from taxpayer registration, tax filing and auditing. The workshop forms part of a joint project between JICA and the GDT to improve business practices at the tax department.

According to Son Chhay, a parliamentarian from the opposition Cambodia National Rescue Party (CNRP), Cambodian tax revenue contributes to about 10 per cent to the country’s GDP, far below neighbouring Vietnam and Thailand whose revenues account for closer to 20 and 30 per cent of GDP respectively.

“Our revenue is lower because we don’t have the clear collection mechanism, so tax officials have the chance to be corrupt,” he said. “What we can do to improve, is we should make a computerised system so that they can record everything.”

According to data from GTD, Cambodia received $443 million in tax revenue during the first five months this year, an increase of 12 per cent from $394 million in the corresponding period last year.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,