Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax collection near $3B in 2020

Tax collection near $3B in 2020

Content image - Phnom Penh Post
The GDT collected nearly $3 billion in tax revenue last year. Hong Menea

Tax collection near $3B in 2020

The Minister of Economy and Finance’s General Department of Taxation (GDT) collected 11.70052 trillion riel ($2.87 billion) in tax revenue last year, up 423.20 billion riel or 3.73 per cent compared to 2019, it said in a January 11 press release.

Speaking at a meeting on tax collection, minister Aun Pornmoniroth said revenue remained resilient in the face of Covid-19 and the introduction of rafts of government stimulus measures.

He stressed that the measures were intended to ease the financial burdens of sectors that are vulnerable to the economic effects of the pandemic and offer them preferential treatment.

The minister said the GDT’s revenue collection remained on track due to the department’s procedural updates and revisions, as well as the dedicated work of officials.

He the GDT to increase tax collection this year and adhere to certain principles such as mobilising taxpayers onto a single system – making it easier for them to pay taxes.

Pornmoniroth also suggested they set up a defence system that makes tax evasion more difficult and that ensures fair competition, equity in taxation and social justice.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on January 12 that revenue growth from the tax sector has been on a steady incline since 2015.

He ascribed this to a surge in accuracy in the tax sector from year to year – both in terms of technological systems and human resources.

“Without Covid-19 and the introduction of government policies in favour of tax breaks for some sectors, especially tourism, collection in 2020 would’ve been much higher. This is another successful step for the tax sector in Cambodia,” Vanak said.

With businesses shuttered last year expected to resume operations this year, he said tax collection would only improve.

Cambodia Chamber of Commerce vice-president Lim Heng said that while revenue growth in 2020 was just more than three per cent, this was a welcome sign that tax collection in the Kingdom is improving.

He noted that more transparent collection would further underpin growth in tax revenue.

“With the current improvement in the investment climate, tax revenue in 2021 is expected to increase further,” Heng said. “The private sector craves a transparent tax payment process that provides a fairer playing field in competition.”

MOST VIEWED

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Phnom Penh curfew starts today

    A two-week curfew from 8pm to 5am starts today in Phnom Penh, a day after a sub-decree detailing administrative measures to contain Covid-19 was issued by Prime Minister Hun Sen. “Travelling in Phnom Penh is temporally banned between 8pm and 5am,” said Phnom Penh governor

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants