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 advised 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

  • First Cambodian woman graduates from Japan’s NDA military academy

    A few years ago, Meach Sithyka Jessica became the first-ever Cambodian woman to graduate from the US Military Academy at West Point, and since then her courage and determination has served as an inspiration for other Cambodian women. Similarly, Ly Chansocheata became the first Cambodian

  • Construction begins on $1.5B Kampot seaport

    The International Multi-Purpose Logistics and Port Centre, principally invested by Kampot Logistics and Port Co Ltd and projected to cost $1.5 billion, has officially broken ground in Bokor town, Kampot province. The multi-purpose logistics and port centre, located in Prek Tnaot commune, will be built on

  • Cambodia eyes key role in electronics, auto hubs in SEA

    Two roadmaps, part of the LDC’s economic diversification plan, were designed to see it through its migration process, but experts say the journey might be arduous, particularly in the presence of two established hubs in the region By 2028, Cambodia hopes to have exited the

  • Hun Neng, lawmaker and PM’s brother, passes away aged 72

    Hun Neng, chairman of the 4th Commission of the National Assembly, has passed away from heart disease at the age of 72 on the afternoon of May 5, according to the Ministry of Information. Hun Neng is the older brother of Prime Minister Hun Sen, and was

  • PM meets with US business giants

    Prime Minister Hun Sen has met with a number of major US companies who have expressed interest in investing in Cambodia, in a meeting convened by the US-ASEAN Business Council (US-ABC). A delegation of companies – including Amazon, Meta, Chevron, ConocoPhillips, ExxonMobil, Ford, Visa and Pernod

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with